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BEFORE  THE 

STATE  SHIP  AND  WATER 
TRANSPORTATION  COMMISSION 


OF  NORTH  CAROLINA 


*  -  V  • '  V  O  i  " 

I^PSlS 


Brief  on  behalf  of  a  State  owned  and  operated 
Port  Terminal  at  the  mouth  of  the 
Cape  Fear  River,  or 

SOUTHPORT 


University  of  Nortli  Carolina 

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FOR  USE  ONLY  IN 

THE  NORTH  CAROLINA  COLLECTION 


Into  jULt  HAS  SEEN  MICROFILMED 


BEFORE  THE 


STATE  SHIP  AND  WATER 
TRANSPORTATION  COMMISSION 

OF  NORTH  CAROLINA 


Brief  on  behalf  of  a  State  owned  and  operated 
Port  Terminal  at  the  month  of  the 
Cape  Fear  River,  or 

SOUTHPORT 


COMMERCIAL  PRINTING  COMPANY,  RALEIGH,  N.  C. 


CONTENTS 


PAGE 

Introduction  - -  3 

The  Function  of  the  Commission -  4 

Inland  Waterway  Terminals -  5 

Coastal  Topography -  5 

Distances  from  Southport  by  Sea -  8 

The  Coastal  Inland  Waterway -  9 

Purposes  for  considering  it -  9 

Its  unfinished  state  in  North  Carolina - 10 

Its  surveyed  routes  in  North  Carolina - 10,  11 

Its  effect  upon  our  Ocean  Commerce - 11 

Its  effect  upon  commerce  of  our  rivers  and  inland 

waters _ 12 

Volume  and  value  of  freight  on  our  inland  rivers  and 

waters  - 13-22 

Its  effect  upon  freight  rates - 23 

Its  effect  upon  agricultural  development - 23 

An  aid  to  national  defense - 24 

South  Carolina  traffic  tributary  to  port  in  North  Carolina 

on  Cape  Fear  Tidal  Basin - 22 

The  North  Carolina  Coal  Fields - 22 

Policy  as  to  State  owned  terminals - 24 

Summary : 

Trend  is  toward  State  owned  terminals ;  Cost  of 
terminals  is  large  but  not  a  burden  on  the  State; 

State  owned  terminals  develop  business - 26-32 

Should  North  Carolina  construct  its  own  terminals? - 32 

Review  of  port  situation  in  United  States  by  United  States 

Engineers  - - 

Requirements  of  a  well  equipped  port - 

Cost  of  a  10,000  ton  ship  lying  in  port - 36 

Table  of  average  draft  and  length  of  ships - 36,  37 

Terminal  defined  - ,)'- 

Terminal  facilities  defined - 2 8 


11 


PAGE 


Port  defined  - 

Cost  of  distribution  discussed - 41-43 

Existing  railroads  and  their  connections - 4o 

Brief  history  of  East  and  West  trunk  lines  of  railways  in 

North  Carolina - 45-53 

Our  present  water  transportation - 53 

New  York  to  Greensboro  class  rates - 54 

Freight  rates _ 54-5 1 

The  coal  situation _ 0 1 

What  is  North  Carolina’s  remedy? - 60 

Traffic  possibilities  incident  to  a  tide  water  terminal - 62 

Traffic  through  the  Panama  Canal - 64 

Foreign  trade  from  Southeastern  ports - 65 

Coaling  and  oil  station  at  Southport - 68 

Physical  qualifications - 68 

Official  reports  of  United  States  District  Engineers  —  69 
Press  and  Chamber  of  Commerce  of  Wilmington  com¬ 


mentations  — 

The  Cape  Fear  River  tidal  basin - 

The  Ocean  Bar - 

United  States  improvements  on  tidal  basin - - 

The  harbor  at  the  mouth  of  the  Cape  Fear  River 

The  anchorage  basin - - 

Southport  or  Wilmington? - 

A.  Wilmington  _ 

1.  The  anchorage  basin  or  harbor - 

2.  The  approaches  to  the  harbor - 

3.  Terminal  facilities  - 

4.  Traffic  _ 

5.  Lightering _ 

6.  Difference  in  cost - 

7.  Coal  and  oil - 

B.  Southport _ 

1.  The  anchorage  basin  or  harbor - 

2.  Approaches  to  the  harbor - 

3.  Terminal  facilities - - - 


69-72 
__  74 


76 

81 

83 

83 

83 

83 


84 

85 
85 


89 

90 
92 


92 

92 

92 


Ill 


PAGE 


4.  Traffic  _ 93 

5.  Lightering _ 93 

6.  Costs  _ 93 

7.  Coal  and  oil _ 94 

Southport : 

What  is  it  and  why _ 94 

Recommendations  _ 96 


Digitized  by  the  Internet  Archive 
in  2019  with  funding  from 
University  of  North  Carolina  at  Chapel  Hill 


https  ://arch  ive.org/detai  Is/beforestatesh  i  pwOOsout 


Southport,  N.  C.,  September  11th,  1923. 

To  the  State  Ship  and  Water  Transportation  Commission, 
Raleigh,  North  Carolina. 

Gentlemen  : 

While  we  appear  before  you  as  representatives  of  Southport, 
North  Carolina,  we  shall  presume  to  speak  to  you  more 
directly  as  citizens  of  the  State  of  North  Carolina,  because  we 
are  convinced  that  the  best  interests  of  our  State  and  of  every 
citizen  thereof  is  involved  in  the  proper  solution  of  the  problems 
you  are  called  upon  to  solve.  In  everything  we  present  to  you 
we  shall  place  State  above  local  interests.  We  shall  emphasize 
the  value  of  the  great  tidal  basin  of  the  Cape  Fear  River  and 
lay  great  stress  upon  the  physical  qualities  of  the  natural 
harbor,  because  we  regard  it  as  of  enormous  potential  value 
to  the  State.  We  expect  to  convince  you  that  this  existing 
land  locked  harbor  with  a  deep  water  area  at  the  mouth  of  the 
Cape  Fear  has  ample  anchorage  space  for  all  vessels;  is  pro¬ 
tected  from  storms  from  all  directions;  is  not  exposed  to  tidal 
waves  and  generally  possesses  all  of  the  essentials  for  a  deep¬ 
water  rate-making  port ;  that  it  is  today  by  international  rating 
a  first  class  harbor,  because  it  has  more  than  30  feet  of  water; 
is  as  complete  and  satisfactory  for  commercial  purposes  as 
any  other  harbor  on  the  Atlantic  seaboard  and  that,  when  this 
great  State  once  recognizes  the  wonderful  asset  it  possesses 
in  this  harbor,  and  that  it  is  its  only  deep  water  harbor,  we 
are  convinced  it  will  develop  and  open  it  to  the  commerce  of 
the  world. 

You  may  well  ask  then  why  have  not  these  special  advantages 
and  physical  qualities  of  this  harbor  been  recognized  by  others 
and  why  has  not  private  capital  taken  charge  of  and  developed 
the  harbor?  In  reply  we  will  show  you  that  these  natural 
physical  advantages  have  been  recognized  on  many  occasions 
by  private  interests,  that  several  attempts  have  been  made  to 
develop  it  into  an  ocean  port  of  entry  of  world-wide  reputation 


4 


and  that  each  and  every  attempt  to  do  this  has  been  prevented 
by  powerful  and  far  reaching  influences;  that  these  opposing 
interests  are  impelled  to  opposition  for  personal  gain  and 
benefit,  and  that  they  will  continue  to  strenuously  oppose  the 
development  of  this  harbor.  We  doubt  not  that  these  interests 
are  still  active  and  will  appear  in  many  guises  in  case  you 
recommend,  as  we  believe  you  will,  the  development  of  this 
harbor  by  the  State  of  North  Carolina.  We  believe  that 
these  interests  are  so  strong  that  it  will  require  action  by  the 
State  if  this  harbor  is  to  be  developed.  We  further  believe  and 
expect  to  convince  you  that  it  is  to  the  best  interests  of  the 
State  to  make  this  development  rather  than  tor  private  or 
corporate  interests  to  do  so. 

We  hope  to  show  you  that  there  is  ample  precedent  for 
State  action  in  developing  this  harbor;  that  in  every  instance 
where  the  State  has  acted  it  has  resulted  in  promoting  the 
best  interests  of  the  whole  community.  We  remind  you  that 
this  State  was  forced  to  take  the  initiative  in  the  original 
opening  of  the  Cape  Fear  River  to  navigation.  We  think  as 
great  if  not  greater  reasons  exist  for  State  initiative  in  opening 
up  an  ocean  port  of  entry  in  the  tidal  basin  at  the  mouth  of 
the  Cape  Fear  River.  Moreover,  we  hope  to  convince  you 
that  in  doing  this  you  will  accomplish  something  that  is  of 
vital  importance  to  every  commercial,  manufacturing  and  agri¬ 
cultural  interest  of  our  people. 

The  Function  of  the  Commission 

May  we  here  state  our  understanding  of  the  primary  or 
fundamental  objects  to  be  accomplished  by  your  Commission 
for  and  in  behalf  of  the  State? 

First :  You  are  to  investigate  the  feasibility  and  practicability 
of  operating  one  or  more  lines  of  ship  and  water  transportation 
on  the  navigable  rivers,  sounds  and  other  navigable  waters 
within  and  beyond  the  boundaries  of  the  State;  the  cost  of 
purchasing,  maintaining  and  operating  suitable  and  adequate 


5 


boats  or  vessels,  and  secure  an  estimate,  i.e.,  determine  whether 
this  can  be  accomplished  as  a  solvent  business  proposition. 

Second:  You  are  to  investigate  and  determine  the  prac¬ 
ticability  of  obtaining  docks,  wharves  and  other  landing  places 
along  the  banks  of  navigable  rivers,  and  terminal  facilities  at 
towns  and  cities,  both  within  and  without  the  State,  together 
with  the  cost  of  building,  buying  or  renting  the  same. 

These  two  propositions,  while  closely  allied,  can  be  considered 
and  treated  separately  by  the  Commission.  That  is,  you  can 
conclude  that  the  operating  of  ship  lines  by  the  State  or  other¬ 
wise  should  not  be  undertaken,  and  yet  you  can  recommend  that 
terminal  facilities  may  be  and  should  be  established  by  the 
State  at  one  or  more  points. 

The  fundamental  purpose  of  your  investigations  should  be 
and  is  to  build  up  the  commerce  and  industries  of  the  State  so 
as  to  put  an  end  to  the  discrimination  in  freight  rates  that 
has  been  in  operation  for  many  years ;  has  cost  the  business 
interests  of  the  State  about  $15,000,000  every  year,  and  which 
North  Carolina  has  been  endeavoring  for  many  years  to  abolish, 
without  success. 


Inland  Waterway  Terminals 

We  will  not  discuss  terminals  for  inland  waterways  and 
rivers.  We  wish  to  state,  however,  that  we  believe  such 
terminals  will  add  very  greatly  to  the  building  up  of  our  river 
and  inland  waterway  commerce,  which  we  will  discuss  with 
reference  to  its  bearing  upon  the  commerce  of  our  ocean  port. 
We  are  convinced  that  should  the  State  construct  suitable 
terminals  at  Fayetteville,  Newbern,  Washington,  Beaufort  and 
other  river  towns  and  cities  of  the  State  subsidiary  facilities 
will  spring  up  through  private  enterprise  wherever  there  is  an 
economical  demand. 


Coastal  Topography 

We  first  invite  your  attention  to  the  maps  and  charts  of 
the  Atlantic  coast  of  North  Carolina.  Our  purpose  is  to  have 


6 


you  visualize  and  retain  in  your  memory  a  mental  picture  of 
the  physical  characteristics  of  our  Atlantic  seaboard.  I  rom  a 
study  of  these  physical  features  we  expect  to  convince  you 
(1)  that  nature  has  limited  this  State  in  the  selection  of  a  deep 
water  ocean  terminal  to  one  and  to  only  one  harbor,  located 
at  the  mouth  of  the  Cape  Fear  River.  (2)  That  these  same 
physical  features  have  forced  ocean  traffic,  whether  north  and 
south  bound  or  east  and  west  bound,  to  establish  lanes  of  travel 
directly  towards  and  very  close  to  this  one  harbor  of  the 
State  as  demonstrated  by  the  following  uncontrovertible  facts : 

1st.  The  main  coast  line  of  the  State  is  separated  from  the 
Atlantic  Ocean  by  inland  waters;  i.e.,  by  sounds,  bays  and  wide 
river  mouths.  Commencing  on  the  north  we  have  Back  Bay, 
Currituck,  Albemarle,  Croatan,  /Pamlico,  Cove  and  Bogue 
sounds  to  Swansboro.  South  of  this  from  Mew  River  we  have 
Chadwick  and  Alligator  bays;  Stumps,  Topsail,  Masonboro  and 
Myrtle  sounds. 

2d.  There  sounds  are  separated  from  the  ocean  by  a  chain  of 
long  and  narrow  reefs,  from  which  project  Capes  Hatteras, 
Lookout  and  Fear.  Through  these  reefs,  or  banks  as  they  are 
called,  there  are  but  few  and  very  shallow  inlets.  The  only 
one  of  any  value  connecting  Albemarle  and  Pamlico  sounds  with 
the  Atlantic  Ocean  is  Ocracoke  Inlet,  south  of  (  -ape  Hatteras. 

3d.  All  of  these  ocean  inlets,  as  well  as  the  sounds  and  bays 
mentioned,  are  quite  shallow  and  continuously  rendered  more 
so  by  reason  of  the  sediment  washed  down  by  the  rivers  empty¬ 
ing  into  them,  and  by  the  sands  blown  from  the  sand  dunes 
along  the  reefs.  The  combined  effects  of  these  will  be  to  con¬ 
stantly  reduce  the  depth  of  wTater  in  these  inland  waters,  while 
the  tendency  of  shipping  is  to  constantly  increase  the  draft  of 
vessels.  This  filling  up  of  the  channels  of  these  inlets  resulted 
in  the  recent  loss  of  the  steam  tug  Juno,  which  is  alleged  to 
have  struck  bottom  in  passing  through  the  channel  of  the  inlet 
into  Beaufort  harbor,  where  she  was  bound  from  Wilmington, 
M.  C. 

4th.  Cape  Hatteras  is  everywhere  recognized  as  one  of  the 


7 


most  dangerous  points  along  the  Atlantic  coast  for  shipping  of 
all  kinds,  and  particularly  for  light  draft  vessels.  It  is  known 
as  the  graveyard  of  shipping  and  fully  deserves  its  reputation. 
To  pass  it  requires  a  very  heavy  toll  in  the  form  of  marine 
insurance.  Frying  Pan  Shoals  is  also  much  feared,  and  for 
the  same  reasons.  The  distance  between  these  two  capes  is  too 
great  to  permit  of  daylight  passage  around  both  of  them.  For 
smaller  vessels  the  distance  is  too  great  to  round  either  of  these 
two  capes  and  reach  the  artificial  harbor  of  refuge  at  Cape 
Lookout,  where  90  vessels  sought  safety  from  storms  during 
the  last  year.  There  is  deep  water  in  the  sheltered  bay  at 
Cape  Lookout,  it  is  relatively  easy  of  approach,  and  as  a 
harbor  of  refuge  for  vessels  which  must  pass  Frying  Pan  Shoals 
on  the  south  and  Cape  Hatteras  on  the  north  its  improvement 
is  justified.  As  a  port  of  entry  its  geography  and  physical 
qualities  preclude  its  consideration. 

5th.  The  charts  show  that  the  only  deep  water  ocean  inlet 
along  the  coast  that  will  avoid  these  dangerous  capes  is  at  the 
mouth  of  the  Cape  Fear  River,  south  of  Frying  Pan  Shoals. 
Moreover,  the  cost  of  securing  and  maintaining  deep  water  in 
the  other  ocean  inlets  will  always  prove  excessive  under  existing 
conditions. 

6th.  The  charts  also  show  that  the  only  natural  deep  water 
harbor  that  is  land  locked,  with  ample  anchorage  space,  good 
holding  ground  and  protection  from  winds  from  every  direction, 
as  well  as  from  tidal  waves,  will  be  found  at  the  mouth  of  the 
Cape  Fear  River. 

7th.  The  ship  lanes  of  all  vessels  passing  north  and  south 
along  the  Atlantic  coast,  due  to  favorable  winds  and  currents, 
and  especially  to  the  close  proximity  of  the  Gulf  Stream,  pass 
nearer  to  the  mouth  of  the  Cape  Fear  River  than  at  any  other 
point  along  the  coast. 

Note  that  it  is  impracticable  to  indicate  exact  position  of  the 
lanes  and  at  the  same  time  indicate  the  names  of  the  ship  lines. 
These  ships  pass  within  35  miles  of  Southport,  from  which 
point  we  indicate  distances  by  sea  to  various  ports. 


8 


Distances  from  Southport  by  sea  to — 


miles 

San  Juan _  924 

Jamaica  - 1,020 

Valparaiso  - 4,134 

San  Francisco  - 4,712 

Buenos  Ayres _ 5,495 

Vancouver  _ 5,500 

(via  Honolulu) 

Yokohama  _ 9,275 

(via  Honolulu) 

Shanghai  _ 10,615 

(via  San  Francisco) 

Honolulu  _ 7,060 

Norfolk  _  260 

Charleston _  175 

Savannah _  150 

Jacksonville  _  275 

Baltimore  _  450 

New  York _  550 

Key  West  _  580 

Boston  _  790 

Havana  _  675 

New  Orleans _  1,180 

Galveston _ 1,350 

Panama  _  1,700  ' 

Dublin  _ 3,400 

Liverpool _ 3,430 

Manchester  _ 3,460 

Bordeaux _ 3,570 

Havre  _ 3,620 

Antwerp  _ 3,710 

Rotterdam  _ 3,710  ' 

Bremen  _ _ _ 3,970 

Hamburg _ 4,130 

Copenhagen  _ 4,250 

Genoa _ 4,260 

Christiania _ 4,325 

Naples  _ 4,390 

Rio  de  Janeiro _ 4,510 


via  regular 
steamship 
lanes  which 
now  head  35 
miles  off 
Southport. 


We  desire  to  emphasize,  (1)  that  a  plumb  line  dropped  from 
Southport  will  strike  Colon  and  the  Panama  Canal;  (2)  that 
Southport  is  nearer  by  sea  to  East  South  American  ports  than 
any  other  Atlantic  port;  (3)  that  due  to  favorable  winds  and 
currents  all  sailing  vessels,  and  today  the  slower  steaming 


9 


vessels,  passing  the  Azores,  head  directly  for  Southport,  even 
those  going  to  ISTorth  Atlantic  ports;  (4)  that  practically  all 
vessels  from  points  south  and  west  pass  Southport;  (5)  that 
ships  from  the  Pacific,  whether  from  the  west  coast  of  South 
America,  Australia,  New  Zealand,  New  Guinea,  the  Celebes,  the 
Orient,  including  all  Asiatic  countries  and  the  Philippines  and 
as  well  the  Pacific  coast  of  America  in  passing  through  the 
Panama  Canal,  or  doubling  the  Horn,  if  bound  for  Atlantic 
ports  of  America  or  European  ports  usually  pass  near  South- 
port;  (6)  that  more  vessels  actually  pass  Southport  through 
this  lane  than  any  other  Atlantic  port,  and  (7)  that  Southport 
is  nearer  the  coal  fields  of  the  Virginias,  Tennessee  and  Ken¬ 
tucky  and  the  great  mid-west  traffic  than  any  other  Atlantic 
port. 

The  Coastal  Inland  Waterway 

This  great  inland  waterway  is  projected  to  connect  Boston, 
Mass.,  with  Key  West,  Florida.  Our  purpose  in  calling  your 
attention  to  this  inland  canal  is : 

1st.  To  fix  in  your  mind  the  exact  location  of  the  completed 
and  uncompleted  portions  of  this  canal  in  the  State  of  North 
Carolina. 

2d.  To  impress  upon  you  the  importance  of  completing  this 
canal  to  the  mouth  of  the  Cape  Fear  River  in  order  to  develop 

(a)  Our  ocean  commerce. 

(b)  The  inland  commerce  of  our  own  rivers  and  inland 
waters. 

(c)  The  reduction  and  fixation  of  freight  rates,  especially 
on  heavy  commodities. 

(d)  The  coastal  section  which  it  traverses. 

(e)  Additional  security  in  our  national  defense. 

3d.  That  you  must  consider  the  effect  of  this  completed 
canal  in  solving  the  problems  which  confront  you  in  providing 
for  an  ocean  terminal. 

This  intra-coastal  waterway  has  been  in  use  though  not 
completed  as  far  as  Beaufort,  North  Carolina,  its  present 
terminus.  An  inland  waterway  is  now  in  use  from  Beaufort 


10 


to  Jacksonville,  N.  C.  This  channel  is  navigable  only  for 
vessels  of  four  or  five  feet  draft,  and  in  addition,  the  channel 
between  Swansboro  and  New  River  is  very  tortuous. 

The  report  of  the  United  States  District  Engineer  of  the 
Norfolk  District  for  1922  shows  that  “the  channel  has  been 
completed  from  Norfolk,  Va.,  to  Albemarle  Sound,  N.  ( and 
from  the  southwest  end  of  Pamlico  Sound,  N.  C.,  to  Beaufort, 
N.  C.  Throughout  this  section  the  project  depth  of  12  feet 
at  mean  low  water  has  been  obtained. 

“The  work  remaining  to  be  done  on  this  project  is  from  the 
mouth  of  Alligator  River  in  Albemarle  Sound  to  the  mouth  of 
Bay  River  in  Pamlico  Sound.  In  order  to  complete  this 
section  16,354,601  cubic  yards  of  material  will  have  to  be 
moved.” 

This  report  also  shows  that  the  amount  required  to  be  appro¬ 
priated  for  completion  of  existing  project  is  $4,051,600.00. 
Amount  that  can  be  profitably  expended  in  fiscal  year  ending 
June  30,  1924,  exclusive  of  available  funds,  $500,000.00,  or  a 
total  of  $740,000.  So  that  it  will  require  until  1929  to  finish 
this  portion  of  the  canal  to  Beaufort  at  the  indicated  rate. 

The  unfinished  waterway  from  Beaufort  to  Southport  has 
been  surveyed  several  times  and  is  now,  we  believe,  definitely 
located.  It  is  recognized  by  all  concerned  as  the  most  important 
and  most  pressing  for  completion  and  was  recommended  by  the 
chief  of  engineers  for  first  consideration  and  construction. 

The  course  of  this  canal  as  roughly  indicated  is  from  Beau¬ 
fort  to  Swansboro  via  Bogue  Inlet,  thence  to  New  River  through 
Marine  marshes,  without  regard  to  the  present  channel.  From 
New  River  it  crosses  a  narrow  neck  of  land  to  Chadwicks  Bay, 
thence  close  to  the  mainland  through  Alligator  Bay,  Stump, 
Topsail,  Masonboro  and  Myrtle  sounds. 

From  the  lower  end  of  Myrtle  Sound  it  crosses  a  narrow, 
low  sand  ridge  of  about  one  mile  into  the  Cape  Fear  River 
and  thence  to  Southport,  which  will  be  its  southern  terminus 
for  some  time.  This,  because  in  passing  south  to  Charleston, 
S.  C.,  the  ocean  navigation  is  not  considered  very  dangerous 


11 


for  boats  using  the  canal,  since  they  have  avoided  the  dangers 
of  Hatteras  and  Frying  Pan  Shoals,  and  there  are  two  ports 
of  refuge  between  Southport  and  Charleston  which  enable 
these  vessels  to  make  daylight  runs  between  them.  South  of 
Charleston  there  are  inland  passages  which  can  be  made  use  of 
to  Key  West,  Florida. 

It  is  deemed  worthy  of  note  that  surveys  were  made  of  two 
other  routes  to  enter  the  Cape  Fear  River,  both  of  which  were 
above  Wilmington.  One  of  these  was  at  Scotts  Hill  Crossing 
and  the  other  at  Hewletts  Creek.  Both  were  rejected  because 
of  the  necessity  for  constructing  locks  and  because  the  cost  of 
making  the  cuts  was  considered  prohibitive.  In  the  Scotts  Hill 
Crossing  this  cut  alone  would  cost  $1,800,000  and  at  Hewletts 
Creek  $1,600,000.  Present  approved  route  crosses  from  the 
Sound  to  lower  Cape  Fear  River  13  miles  below  Wilmington, 
entering  the  upper  end  of  Southport  harbor. 

From  a  glance  at  the  map  it  becomes  quite  evident  that,  when 
the  canal  is  finished  to  the  mouth  of  the  Cape  Fear  River,  it 
will  become  at  once  the  natural  and  economic  outlet  for  all 
ocean  freight  developed  on  practically  all  of  the  inland  waters 
and  rivers  of  North  Carolina,  and  likewise  the  route  for  dis¬ 
tributing  incoming  ocean  freight  on  our  rivers  and  inland  waters. 
This  is  manifestly  true  as  to  all  that  section  of  the  State  south 
of  and  including  the  southern  shore  of  Albemarle  Sound  and 
the  Roanoke  River.  This  is  the  present  northern  boundary 
of  the  United  States  Engineer  Rivers  and  Harbors  District, 
with  headquarters  at  Wilmington.  Note  that  the  distance  by 
sea  from  Beaufort  to  Norfolk  is  225  miles  and  between  the 
same  points  by  the  inland  canal  is  206  miles,  while  the  distance 
from  Beaufort  to  Cape  Fear  Point  is  only  93  miles  by  sea  and 
by  the  canal  when  completed,  will  be  somewhat  less  to  South- 
port.  With  this  canal  completed  this  difference  in  distance  from 
Beaufort  to  an  ocean  terminal  at  the  mouth  of  the  Cape  Fear 
River  will  certainly  result  in  diverting  practically  all  of  this  in¬ 
land  water  freight  of  North  Carolina  from  Norfolk  to  our  own 
port  at  the  mouth  of  the  Cape  Fear  River.  Until  this  inland 


12 


canal  is  completed  all  of  this  river  and  inland  water  freight 
north  of  Beaufort  is  forced  to  seek  an  outlet  via  this  canal  to 
Norfolk,  or  to  undergo  the  risks  of  narrow  inlets  with  uncertain 
channels  to  the  ocean,  the  dangers  of  rounding  Hatteras  or 
Frying  Pan  Shoals  and  paying  heavy  marine  insurance  in 
doing  so. 

This  inland  traffic  reaches  back  practically  to  the  head  waters 
of  all  these  North  Carolina  rivers  into  and  beyond  the  Piedmont 
section,  and  includes  all  the  watercourses  of  the  State  from 
the  Boanoke  River  on  the  north  to  Little  River  on  the  southern 
boundary. 

The  following  data,  compiled  from  the  official  reports  of 
the  District  Engineer’s  office  for  1922,  shows  the  volume  and 
value  of  this  freight,  with  comparative  statement  of  previous 
years,  on  all  the  creeks  and  rivers  of  the  State  in  the  section 
named.  It  also  shows  the  effect  of  these  improvements  upon 
freight  rates.  It  must  be  understood,  however,  that  the  volume 
and  value  of  this  commerce  during  the  past  year  has  been  very 
much  greater  than  during  the  years  contained  in  these  tables. 
The  volume  and  value  of  commerce  for  the  port  of  Wilmington, 
for  example,  is  understood  to  be  the  greatest  in  the  history 
of  that  port. 

The  tables  herein  are  taken  from  official  sources  and  indicate 
the  depth  of  water,  amount  of  commerce  of  the  navigable 
rivers  and  sounds  within  this  district,  and  also  the  commerce 
developed  thereon. 

SCUPPERNONG  RIVER,  North  Carolina 

Thirty  miles  long;  drainage  area  182  square  miles.  Depth 
of  water  5  feet. 

In  1922  there  was  a  mean  depth  of  10  feet  from  the  mouth 
to  Columbia,  7  feet  to  Spruills  Bridge,  and  61/ »  feet  to  Cherry, 
26  miles  from  the  mouth. 


13 


Comparative  Statement 


Calendar 

General  Commerce 

Timber  rafted  Passengers 

year 

and  towed 

Short  tons  Value 

Short  tons 

Value 

1917 

6,665  $  670,229 

2,400  $ 

9,600  700 

1918 _ 

—  15,334  969,077 

5,400 

32,400  500 

1919 

8,659  1,046,771 

30,201  302,010  500 

1920 

7,102  678,276 

500 

1921 

10,838  379,606 

1,131 

4,524  500 

MANTEO  BAY  or  SHALLOWBAG  BAY,  North  Carolina 

This  bay  is  45  miles  from  Elizabeth  City,  N. 

C.,  and  90  miles 

from  Norfolk.  It  is  about  one 

mile  wide  and 

l1/!  miles  long. 

Comparative 

Statement 

Calendar 

General  Commerce 

Passengers 

year 

Short  tons 

Value 

1916 

9,021 

$  662,472 

8,148 

1917 

9,820 

1,177,683 

7,000 

1918 

8,156 

1,156,441 

5,000 

1919 

7,943 

1,505,444 

6,000 

1920 

4,823 

887,171 

10,000 

1921 

5,003 

511,742 

10,000 

PAMLICO  AND 

TAR  RIVERS 

Length  from  source  in  Person  County  to  mouth  217  miles, 
drainage  area  3,607  square  miles.  Pamlico  River  is  38  miles 
long.  The  channel  up  to  Washington,  N.  C.,  is  10  feet  deep  and 
200  feet  wide;  to  Greenville  6  feet  deep,  and  75  feet  wide; 
to  Tarboro  20  inches  deep,  and  60  feet  wide;  above  Tarboro  to 
Little  River  involves  the  keeping  the  channel  cleaned  out.  The 
total  length  that  is  under  improvement  is  87  miles  to  Little 
Palls. 

The  effect  of  this  improvement  has  been  to  lower  the  water 
freight  rates  and  to  allow  vessels  of  deeper  draft  to  reach 
Washington,  N.  C.  Above  Washington  it  has  provided  a 
navigable  and  convenient  way  for  handling  farm  produce, 
fertilizer,  etc.  Of  the  commerce  for  the  year  131,225  tons, 
valued  at  $3,549,232  passed  over  the  improved  section. 


Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passengers 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1916 

_  151,991 

$3,890,761 

126,897 

$418,760 

10,000 

1917 

_  122,712 

4,401,083 

74,596 

297,984 

9,000 

1918 

-  122,993 

6,100,244 

77,553 

465,318 

8,000 

1919. 

_  101,493 

6,503,610 

55,450 

554,500 

6,000 

1920  _  . 

_  104,308 

5,802,256 

35,643 

356,430 

8,000 

1921 

_  113,967 

3,598,712 

31,805 

127,220 

8,000 

FISHING  CREEK,  North  Carolina 

120  miles  long,  heads  in  Warren  County;  empties  into  Tar 
River;  drainage  area  857  square  miles;  depth  about  4  feet  at 
ordinary  stages,  and  width  40  to  100  feet.  Navigable  40  miles 
ebove  its  mouth. 


Comparative  Statement 


Calendar 

General  Commerce 

Timber  rafted  and 

year 

towed 

Short  tons 

Value 

Short  tons 

Value 

1916 

112 

$  6,720 

600 

$1,980 

1917 

_  _  247 

11,760 

1,050 

4,200 

1918  _ 

120 

9,030 

1,500 

9,000 

1919 

1920 

1921 

SOUTH  RIVER,  North  Carolina 

13  miles  long  and  empties  into  Pamlico  River  12  miles  above 
its  mouth;  drainage  area  48  square  miles;  navigable  for  10 
miles  to  Idalia. 


Calendar 

year 


Comparative  Statement 

General  Commerce 


Timber  rafted 
and  towed 


Passengers 


Short  tons 

Value 

Short  tons 

Value 

1917_  . 

13,579 

$382,659 

17,562 

$70,248 

1,400 

1918  . 

11,789 

514,546 

9,696 

58,176 

1,200 

1919  . 

12,770 

635,739 

8,005 

80,550 

1,500 

1920  . 

7,384 

416,667 

5,700 

57,000 

1,500 

1921  . 

9,832 

445,385 

6,000 

24,000 

1,000 

15 


BAY  RIVER,  North  Carolina 

Entirely  in  Pamlico  County;  length  20  miles;  drainage  area 
153  square  miles;  Bayboro  practical  head  of  navigation,  17 
miles  from  the  mouth. 


Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passengers 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

__  9,248 

$405,451 

4,500 

$18,000 

950 

1918 

8,508 

700,096 

7,800 

46,800 

800 

1919 

_  5,251 

477,418 

3,900 

39,000 

900 

1920 

4,025 

427,929 

3,900 

39,000 

800 

1921 

2,168 

168,174 

3,000 

12,000 

500 

NEUSE  RIVER,  North  Carolina 

Total  length  350  miles;  drainage  area  5,608  square  miles; 
navigable  to  Smithfield,  150  miles  above  its  mouth.  There  is 
a  channel  300  feet  wide  and  85  feet  deep  below  New  Bern; 
4  feet  deep  to  Kinston,  and  3  feet  deep  to  Smithfield.  The 
effect  of  the  improvement  of  this  river  has  been  to  reduce  rail 
and  water  freight  rates  and  to  open  up  a  more  convenient 
method  to  ship  farm  produce,  fertilizer,  etc. 


Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passengers 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

_  211,262 

$6,737,954 

85,281 

$341,134 

7,500 

1918 

135,408 

6,324,971 

80,555 

481,614 

7,000 

1919 

116,271 

7,213,683 

67,258 

672,580 

7,000 

1920 

141,627 

7,417,302 

60,592 

606,920 

8,000 

1921 

92,761 

4,630,250 

32,718 

130,872 

8,000 

SMITH’S  CREEK,  North  Carolina 

Smith’s  Creek  rises  in  Pamlico  County  and  empties  into 
Keuse  River  at  Oriental.  Is  5  miles  long  and  navigable  for 
two  or  three  miles ;  drainage  area,  24  square  miles ;  depth  of 
channel  8%0  feet  and  100  feet  wide;  the  depth  of  basin  at 
Oriental  is  9  feet. 


16 


Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passenger; 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

__  8,262 

$308,375 

3,642 

$  14,568 

1,800 

1918 

10,760 

416,916 

630 

3,780 

1,600 

1919 

18,202 

797,531 

27,000 

270,000 

1,500 

1920 

5,447 

526,162 

1,800 

18,000 

1,500 

1923 

4,848 

219,907 

1,000 

SWIFT  CREEK,  North  Carolina 

43  miles  long;  drainage  area  316  square  miles,  and  empties 
into  Neuse  River  7%  miles  above  New  Bern,  channel  5  feet 
deep  and  50  feet  wide;  available  to  Vanceboro,  the  head  of 
navigation,  12  miles  above  the  mouth. 


Comparative  Statement 


Calendar  General  Commerce  Timber  rafted  Passengers 

year  and  towed 

Short  tons  Value  Short  tons  Value 

1917  _  3,273  $261,895  18,675  $  74,700  525 

1918  _  3,924  334,117  15,939  85,634 

1919  _  2,459  240,359  13,584  135,840 

3  920 _  1,360  209,515  10,281  108,210 

1921 _  979  67,603  12,438  49,752 


CONTENTNEA  CREEK,  North  Carolina 

Contentnea  Creek  rises  in  Wilson  County,  32  miles  above 
New  Bern,  and  has  a  drainage  area  of  1,184  square  miles.  Is 
under  improvement  from  the  mouth  to  Stantonsburg,  63  miles. 


Comparative  Statement 


Calendar  General  Commerce  Timber  rafted  Passengers 

year  and  towed 

Short  tons  Value  Short  tons  Value 

3  93  7 _  2,472  $105,396  3,600  $14,000  _ 

193  8 _  3,185  201,777  2,100  12,600  _ 

3  919 _  2,312  129,105  1,000  10,000 

1920 _  235  11,750  _  _ 

1923 _  60  2,160  _ .  _ 


17 


TRENT  RIVER,  North  Carolina 

It  empties  into  Neuse  River  at  New  Bern.  It  flows  80  miles 
through  Jones  and  Creven  counties  (40  miles  on  an  air  line); 
has  a  drainage  area  of  657  square  miles;  it  has  a  channel  8 
feet  deep  at  New  Bern  and  6  feet  deep  over  Foys  Flats,  and 
channel  50  feet  wide  and  4  feet  deep  at  Trenton.  It  now  has  a 
channel  9%0  feet  deep  at  Pollocksville. 

The  effect  of  this  improvement  has  been  to  put  commerce 
at  Trenton,  which  has  no  other  outlet,  at  reduced  freight  rates. 

Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passengers 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

18,479 

$  939,302 

30,332 

$121,328 

125 

1918 

12,890 

880,496 

18,681 

112,086 

100 

1919 

18,903 

1,409,588 

10,950 

109,500 

300 

1920 

10,788 

1,168,534 

37,608 

376,020 

300 

]  921 

8,556 

603,522 

59,322 

237,288 

300 

HARBOR  AT  BEAUFORT,  North  Carolina 

(1)  The  following  improvements  have  been  authorized  at 
and  near  Beaufort.  A  channel  1%  miles  long  connecting  Core 
and  Pamlico  sounds  through  Thoroughfare  Bay  and  Cedar 
Bay,  to  be  5  feet  deep  and  50  feet  wide. 

Comparative  Statement 


Calendar  General  Commerce 

year  Short  tons  Value 

1919  _ 4,015  $90,505 

1920  _  3,636  94,707 

1921  _  3,972  39,650 


(2)  A  channel  100  feet  wide  and  7  feet  deep  from  deep  water 
inside  inlet  at  Beaufort,  to  have  a  channel  60  feet  wide  and 
10  feet  deep  from  Beaufort  to  Pamlico  Sound,  giving  Beaufort 
Inlet  Waterway  by  way  of  Gallants  Channel,  with  a  turning 
basin  in  front  of  Beaufort.  The  effect  of  this  improvement 
has  been  to  allow  boats  of  deeper  draft  to  reach  the  wharves 
at  Beaufort,  and  caused  a  regular  line  of  boats  between  Norfolk 


—2 


TS-1 


IS 


■  s* ; 


and  Beaufort,  and  lias  caused  a  reduction  in  water  and  rail¬ 
road  freight  rates. 


Comparative  Statement 


Cal.  General 

Commerce 

Timber  rafted 

Cargoes  in 

Passengers 

year 

and 

towed 

Transit 

S.  tons 

Value 

S.  tons 

Value 

S.  tons 

Value 

1917 _ 65,959 

$3,063,327 

_ _ 

_ 

81,812 

$814,931 

10,000 

.1918 _ 79,504 

4,827,180 

304 

$  1,824 

62,432 

444,996 

10,000 

1919 _ 67,976 

5,004,210 

2,961 

29,610 

35,000 

387,000 

10,000 

1920 _ 62,750 

4,814,186 

4,860 

48,600 

42,000 

615,000 

12,000 

1921 _ 30,593 

973,951 

6,768 

27,072 

45,246 

1,398,546 

12,000 

(3)  A  waterway 

connecting  Core  Sound  and 

Beaufort 

Harbor.  Is  2%  miles  long,  50  feet  wide  and  6  feet  deep. 


Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

•  rafted 

Passengers 

year 

and 

towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

26,463 

$1,364,808 

_ 

6,000 

1918 

36,846 

2,052,318 

—  —  —  — 

4,500 

1919 

31,332 

2,321,461 

2,700 

$27,000 

5,000 

1920 

29,404 

2,787,002 

5,250 

52,500 

10,000 

192] 

20,162 

1,213,610 

3,456 

13,824 

10,000 

(4)  Inland  waterway,  Beaufort  to  Jacksonville,  H.  C.,  this 
runs  through  Bogue  Sound,  from  Beaufort  to  Swansboro  25 
miles,  from  Swansboro  to  Hew  River  22  miles,  and  from  Hew 
River  to  Jacksonville,  H.  C.,  31  miles.  The  channel  is  100 
feet  wide  and  3  feet  deep  between  Beaufort  and  Swansboro ; 
40  feet  wide  and  3  to  4  feet  deep  to  Craig  Point,  thence  40 
feet  wide  and  3  feet  deep  to  Jacksonville. 


Comparative  Statement 


Calendar  General  Commerce 


Timber  rafted  Passengers 


year  and  towed 


Short  tons 

Value 

Short  tons 

Value 

1917  . 

43,697 

$1,040,052 

46,674 

$186,696 

16,000 

1918  . 

56,433 

1,424,080 

28,013 

168,138 

15,000 

1919  . 

36,476 

1,641,112 

35,400 

254,000 

15,000 

1920  . 

43,795 

1,416,540 

26,265 

262,650 

15,000 

192]  . 

43,079 

1,103,706 

13,557 

54,228 

15,000 

19 


HARBOR  AT  MOREHEAD  CITY,  North  Carolina 

It  is  located  on  Bogne  Sound,  43  miles  by  inland  waterway 
to  Hew  Bern;  200  miles  by  inland  waterway,  and  225  miles  by 
ocean  route  to  Norfolk.  The  improvements  consist  of  a 
channel  3,800  feet  long,  the  lower  2,800  feet,  being  100  feet 
wide,  the  upper  being  200  feet  wide. 

Comparative  Statement 


Calendar 

General 

Commerce 

Timber 

rafted 

Passengers 

year 

and  towed 

Short  tons 

Value 

Short  tons 

Value 

1917 

72,680 

$1,110,237 

_  _  __  _ 

10,000 

1918 

20,124 

1,623,237 

_ 

10,000 

1919 

12,173 

1,267,360 

_ 

10,000 

1920 

12,921 

1,347,294 

600 

$  6,000 

12,000 

1921 

11,367 

1,180,934 

3,000 

12,000 

12,000 

BEAUFORT  INLET,  North  Carolina 

Connects  Beaufort  Harbor  with  the  Atlantic  Ocean.  It  is 
3  miles  from  Beaufort.  The  channel  is  about  300  feet  wide  and 
20  feet  deep,  at  low  water.  The  length  of  the  channel  is 
11,500  feet.  At  present  the  channel  has  a  depth  at  mean  low 
Avater  of  14  feet. 


Comparative  Statement 


Calendar  General  Commerce 

year  Short  tons  Value 

1917  _ 86,516  $845,651 

1918  _  78,650  404,028 

1919  _  51,179  619,625 

1920  _  37,436  772,060 

1921  _  37,545  392,378 


HARBOR  OF  REFUGE,  CAPE  LOOKOUT,  North  Carolina 

Is  being  constructed  as  a  Harbor  of  Refuge.  It  is  74  miles 
from  Cape  Hatteras;  95  miles  from  Cape  Fear  River  and 
125  miles  from  Wilmington  by  water,  and  225  miles  from 
Norfolk.  The  harbor  is  1%  miles  by  1 %  miles.  There  is  a 
depth  of  A\rater  at  the  mouth  of  42  feet  and  within  the  harbor 


20 


30  feet  at  mean  low  water.  During  the  calendar  year  1921 
vessels  took  refuge  in  this  harbor  as  follows : 


Steamers  _ 28 

Schooners  _  4 

Yachts  _ 12 

Barges  _ 25 

Subchasers _  2 

Tugs _ 19 


Total  _ 90 


CAPE  FEAR  RIVER,  North  Carolina 

Formed  by  the  confluence  at  Haywood,  N.  C.,  of  the  Deep 
and  Haw  rivers.  Total  length  400  miles;  drainage  area  9,017 
square  miles,  which  includes  350  square  miles  of  the  section 
below  Wilmington,  or  from  the  junction  of  the  North  East 
and  Cape  Fear  rivers. 

The  Cape  Fear  River  above  Wilmington  is  navigable  with 

- feet  of  water  to  Fayetteville,  115  miles.  This  depth 

obtained  by  the  construction  of  two  locks;  one  at  Kings  Bluff, 
and  the  other  at  Browns  Landing. 

The  improvements  at  present  permit  vessels  drawing  5  feet 
to  navigate  71  miles  above  Wilmington,  and  vessels  drawing 
4  feet  to  reach  Fayetteville.  These  improvements  have  had  no 
effect  on  rail  or  water  rates. 

Comparative  Statement  of  Traffic 

Floating  Timber,  etc. 


Year 

Tons 

Value 

Passengers 

Tons 

Value 

1917 _ 

—  60,853 

$1,823,534 

3,906 

16,298 

$  65,992 

1918 

44,255 

2,087,611 

3,000 

28,931 

31,792 

1919 

37,275 

2,180,815 

—  —  —  — 

30,020 

240,160 

1920 

34,189 

2,606,826 

3,000 

5,772 

46,176 

1921 

48,021 

3,016,379 

1,600 

13,594 

95,158 

NORTH  EAST  RIVER,  North  Carolina 

This  rises  in  Duplin  County  and  is  130  miles  long.  It  is 
navigable  to  Kornegays  Bridge,  103  miles.  The  channel  for 
2%  miles  above  the  mouth  of  the  river  is  22  feet  deep  and  180 


21 


feet  wide.  It  lias  a  depth  of  6  feet  to  Bannermans  Bridge, 
and  3  feet  to  Crooms  Bridge.  Above  Crooms  Bridge  the 
river  is  navigable  only  when  the  water  is  up.  The  effect  of 
the  improvements  in  this  river  is  to  facilitate  the  handling  of 
farm  products,  fertilizer,  etc.  There  has  been  no  effect  on 
freight  rates. 


Comparative  Statement  of  Traffic 

Floating  Timber,  et?. 

Year  Tons  Value  Passengers  Tons  Value 

1917  _  49,340  $1,131,705.25  2,000  18,416  $121,664 

1918  _  43,099  1,638,331.00  2,000  18,011  123,367 

1919  _  53,127  2,151,213.00  _  14,502  120,016 

1920  _  39,619  1,837,113.00  1,000  8,478  67,824 

1921  _  35,820  1,609,912.00  750  9,642  67,494 


BLACK  RIVER,  North  Carolina 

Black  Biver  rises  in  Sampson  County,  and  empties  into  the 
Cape  Fear  River  14  miles  above  Wilmington,  and  175  miles 
from  its  source.  Has  a  drainage  area  of  1,547  square  miles. 
At  present  it  is  navigable  to  Long  View  Bridge,  25  miles  above 
its  mouth.  Above  that  place  to  Point  Caswell,  there  is  a  depth 
of  5  feet,  with  2%  feet  to  Hawes  Harrows,  32  miles  above  its 
mouth,  and  1%  feet  to  Clear  Run,  66  miles  above  the  mouth. 


Comparative  Statement  of  Traffic 

Floating  Timber,  etc. 

Year  Tons  Value  Passengers  Tons  Value 

1917  _ 14,155  $440,187  579  7,526  $30,904 

1918  _  8,486  379,367  400  5,802  41,619 

1919  _  7,369  400,619  ___  4,645  37,160 

1920  _  1,935  245,250  250  1,200  9,600 

1921  _  2,529  279,232  450  2,416  16,912 


CAPE  FEAR  RIVER  BELOW  WILMINGTON 

At  present  there  is  a  channel  across  the  bar  26  feet  at  mean 
low  water  and  400  feet  wide,  with  a  channel  up  the  river  25 
feet  deep  at  mean  low  water.  The  anchorage  basin  at  Wilming¬ 
ton  has  been  dredged  to  a  depth  of  26  feet.  The  anchorage 
basin  at  that  point  is  about  2,000  feet  long. 


22 


Comparative  Statement  of  Traffic 


Floating  Timber,  etc. 
in  Transit 


Year 

Tons 

Value 

Passengers 

Tons 

Value 

1917 

.  454,730 

$33,050,246.00 

48,420 

23,133 

$  97,332 

]918 

434,411 

42,731,492.00 

44,435 

24,812 

176,378 

1919  . 

.  502,753 

71,863,465.00 

56,807 

7,659,462 

1920  . 

.  564,981 

50,469,903.70 

15,246 

40,198 

5,791,240 

3  921 

.  441,471 

37,951,252.00 

20,189 

80,782 

6,931,310 

SHALLOTTE  RIVER,  North  Carolina 

All  commerce  from  this  river  is  handled  by  gas  boats  and 
schooners  drawing  from  3  to  4  feet  of  water. 


Comparative  Statement  of  Traffic 


Year 

Tons 

1917 

3,393 

1918 

3,216 

1919 

6,320 

1920 

4,020 

1921 

3,930 

Value  Passengers 

$360,644  _ 

448,137  _ 

601,616  _ 

532,759  _ 

404,365  _ 


Floating  Timber,  etc. 
Tons  Value 


3,600  $28,800 


500  3,500 


South  Carolina 

We  feel  warranted  in  calling  attention  in  this  connection 
to  the  geography  and  railroads  of  northern  and  northeastern 
South  Carolina.  This  section  is  directly  tributary  to  the 
mouth  of  the  Cape  Fear  River  and  by  reason  of  its  proximity 
will  naturally  furnish  very  considerable  traffic  for  a  port  with 
modern  terminal  facilities  when  once  established  there.  Both 
the  Atlantic  Coast  Line  and  the  Seaboard  Air  Line  run  directly 
to  Columbia,  S.  C.,  and  the  Seaboard  Air  Line  also  runs 
through  part  of  South  Carolina  in  reaching  Bostic,  N.  C., 
and  this  general  section  of  South  Carolina  produces  traffic  in 
large  volume. 


The  North  Carolina  Coal  Fields 

As  you  know,  we  are  developing  some  coal  fields  which  have 
been  officially  declared  to  cover  a  very  considerable  area  in 
Chatham,  Lee  and  Moore  counties.  It  is  a  fine  steaming  coal 


23 


in  large  deposits  and  of  commercial  value.  When  properly 
opened  up  these  deposits  will  furnish  very  considerable  traffic 
and  can  successfully  compete  in  the  markets  with  coal  from 
other  more  distant  fields.  It  is  directly  tributary  by  rail  and 
water  to  the  Cape  Fear  tidal  basin  and  it  is  believed  that 
much,  if  not  all,  of  it  can  be  economically  floated  down  the 
Cape  Fear  River  to  tide  water  for  export. 

Effect  of  This  Completed  Canal  Upon  Freight  Rates 

Fifteen  years  ago  the  Erie  Canal  had  paid  the  cost  of  its 
construction,  maintenance,  operation  and  interest  and  had 
turned  into  the  Treasury  of  Hew  York  State  $29,000,000,  so 
that  it  was  a  free  canal  without  a  charge  of  any  kind  to  com¬ 
merce.  In  addition  it  had  compelled  the  railroads  to  give 
better  rates  and  better  accommodation.  It  still  fixes  and 
stabilizes  freight  rates  in  this  country.  More  important  still, 
it  has  helped  the  railroads,  and  this  canal  to  Beaufort  has  had 
the  same  effect.  At  this  time  by  reason  of  this  canal  Hew  Bern 
can  ship  lumber  on  barges  for  about  one-half  of  the  rail  rate. 
This  was  impossible  when  such  freight  was  forced  to  use 
expensive  ocean  barges  and  be  exposed  to  the  additional  in¬ 
surance  cost  and  the  risks  of  Hatteras. 

The  full  effect  of  this  canal  cannot  and  will  not  be  felt  until 
the  Beaufort-Cape  Fear  section  is  completed,  thereby  opening 
up  for  development  the  inland  water  traffic  of  the  entire  State. 

Agricultural  Development 

The  great  coastal  plain  of  this  State  through  which  this 
canal  will  pass  is  at  present  practically  undeveloped,  due  very 
largely  to  the  absence  of  cheap  transportation  facilities.  There 
is  no  part  of  this  great  country  where  one  can  find  all  of  the 
fundamentals  for  successful  agriculture  and  horticulture  com¬ 
bined  with  cheap  lands  as  in  this  coastal  plain  of  Horth  Caro¬ 
lina.  Here  we  have  very  fertile  soil  types,  temperate  climate 
with  long  growing  seasons  and  an  abundance  of  rain  fall  splen¬ 
didly  distributed  throughout  the  year.  This  agricultural  de- 


24 


velopment  awaits  the  adoption  of  a  wise  land  settlement  policy 
with  available  transportation  facilities  for  marketing  the  crops 
produced.  This  basic  agricultural  development  invariably 
carries  with  it  the  development  and  growth  of  towns  with  manu¬ 
facturing  plants,  business  of  all  kinds,  with  great  increase  in 
traffic  for  both  water  and  railroads,  as  well  as  highways. 

An  Aid  to  National  Defense 

From  a  military  standpoint  this  completed  inland  waterway 
should  be  invaluable  in  time  of  war  by  permitting  the  passage 
of  torpedo  boats  and  other  vessels  of  suitable  draft,  the  distri¬ 
bution  of  supplies  with  safety  through  an  inland  passage  and 
providing  a  suitable  submarine  base.  The  torpedo  boat  Ericson 
was  the  first  to  pass  through  the  Dismal  Swamp  of  this  inland 
waterway,  from  which  it  passed  into  the  Atlantic  Ocean  via 
Ocracoke  Inlet.  When  this  canal  is  completed  to  the  mouth  of 
the  Cape  Fear  River,  these  light  draft  water  vessels  will  find 
safe  and  direct  passage  as  far  as  Southport,  where  they  will 
enter  a  harbor  well  adapted  for  submarines  which,  with  our 
air  planes,  will  be  an  absolute  essential  for  the  safety  of  the 
State  and  nation  in  the  emergency  of  war. 

Here  we  wish  to  emphasize  that  none  of  the  foregoing  benefits 
can  or  will  accrue  unless  the  State  establishes  in  its  only  deep 
water  harbor  at  the  mouth  of  the  Cape  Fear  River  an  ocean 
port  of  entry,  with  suitable  terminal  facilities  for  commerce. 

POLICY  AS  TO  STATE  OWNED  TERMINALS 

What  is  the  policy  in  this  country  as  to  public  ownership  of 
port  terminals?  Without  going  into  details,  we  confidently 
assert  that  public  ownership  and  administration  is  the  manifest 
tendency  in  Europe  today.  In  examining  port  development  in 
this  country  we  find  that  the  tendency  to  public  ownership  and 
administration  of  port  terminals  is  beyond  question ;  that  where- 
ever  tried  it  has  resulted  in  reduced  cost  to  shippers,  in  increase 
of  business  for  the  port  and  adequate  compensation  to  the  State 


25 


or  municipality,  and  without  expense  to  the  State  further  than 
extension  of  its  credit. 

With  the  exception  of  New  York,  port  development  in  the 
United  States  has  been  of  one  railroad,  by  one  railroad,  to 
serve  one  railroad.  The  water  front,  the  railroad  pier  and 
even  the  line  of  ships  berthing  at  the  pier  are  considered  by 
the  railroad  as  a  part  of  its  own  private  system.  Since  the 
solidification  of  rate  structure  about  40  years  ago  about  the 
only  competition  left  between  railways  is  at  the  terminals. 
The  effect  of  this  competition,  particularly  for  maritime  freight, 
has  been  to  disrupt  modern  ports  into  as  many  disconnected 
sections  as  there  are  railroad  terminals  at  the  port.  When  we 
realize  that  from  New  York  50  per  cent,  from  Boston  65 
per  cent  and  from  Philadelphia  75  per  cent  of  the  ocean  freight 
goes  into  the  interior  by  rail  and  that  on  each  transatlantic 
ship  sailing  from  a  port  the  earnings  of  the  railways  are  from 
thirty  to  forty  thousand  dollars  the  interest  of  the  railroads  is 
manifest,  and  they  will  not  readily  give  up  the  advantages  of 
this  competition  until  there  is  an  authority  in  the  country 
which  is  higher  than  the  railroads  and  above  reproach  or  bias. 
A  good  example  of  the  resulting  lack  of  coordination  in 
American  ports  will  be  found  at  Fort  William  and  Port  Arthur 
at  the  head  of  the  Great  Lakes. 

The  Canadian  Pacific  Railway  developed  Fort  William 
as  a  place  to  which  grain  might  be  brought  for  shipment  by 
Lake  steamers.  The  road  took  all  the  best  territory  for  itself. 
The  Grand  Trunk  came  along  and  took  what  was  left.  When 
the  Canadian  Northern  came  along  there  was  nothing  left  at 
Fort  William,  so  it  was  forced  to  develop  Port  Arthur,  a  short 
distance  away.  With  state  development,  including  a  belt  line, 
this  would  have  been  unnecessary  since  it  would  have  made 
every  wharf  and  every  elevator  a  part  of  every  railway  system 
available  to  all  ships  and  tonnage  on  an  equal  basis.  It  would 
have  enabled  a  private  elevator  company  at  the  head  of  the 
Lakes  to  utilize  any  one  of  the  three  roads  and  not  be  held 
hack  by  an  accident  to  any  one  of  them. 


26 


This  terminal  competition  between  rail  lines  at  ports  involves 
the  wharfage,  switching  and  lighterage  charges.  The  railroads 
absorb  these  charges  in  the  through  freight  rate  carried  over 
its  own  lines,  but  cannot  do  so  on  freight  transported  into  the 
interior  over  the  rails  of  a  rival  company.  Each  rail  terminus 
thus  becomes  a  port  in  itself.  In  short  any  port  property, 
as  the  elevator  sites  at  Fort  William  or  Fort  Arthur,  or  the 
water  front  at  Boston,  cannot  compete  against  the  free  wharfage 
and  free  switching  of  a  free  terminal  railroad.  These  are 
usually  considered  of  no  interest  to  the  public,  yet  the  terminal 
charges  of  the  railroads  involve  the  entire  development  of 
the  port  and  therefore  are  most  emphatically  the  public’s 
business.  It  is  for  these  reasons  and  the  demonstrated  success 
of  state  and  municipal  development  and  administration  of 
port  terminals  in  Europe  that  the  tendency  in  this  country  is 
toward  public  ownership  and  operation  of  our  ports.  Under  the 
present  system  the  railroads  in  general  use  their  water  ter¬ 
minals  to  buy  business. 

“One  of  the  greatest  obstacles  to  the  progress  of  our  ship¬ 
ping  business  and  to  the  promotion  of  our  export  and  import 
traffic  is  the  lack  of  unity  of  management.  In  this  respect 
we  should  take  a  leaf  from  the  book  of  our  British  com¬ 
petitors,  who  have  made  this  subject  a  study  for  many 
years  of  successful  maritime  business.  Every  considerable 
British  port  has  a  really  unified  management.”  (H.  T>. 
109,  67th  Cong.,  1st  Session.) 

“Every  United  States  port  should  own  its  water  front, 
and  this  should  be  controlled  by  a  port  authority  composed 
of  business  men  who  have  an  intelligent  grasp  of  the  export 
and  import  business,  and  who  are  willing  to  devote  sufficient 
time  to  the  subject.  These  should  be  appointed  without 
regard  to  political  affiliations,  and  should  take  the  broad 
view  that  the  port  is  the  property  of  the  people  at  large, 
and  that  the  provision  of  the  best  facilities  will  promote 
quicker  ship  dispatch,  attract  more  ships,  and  thus  enlarge 
the  commerce  of  the  port;  that  while  the  port  terminal 


27 


should  be  self-supporting,  the  charges  should  be  adjusted 
to  produce  this  result  without  injury  to  business,  and  that 
the  growth  of  the  port  will  mean  the  growth  of  the  city, 
and  increased  material  prosperity  to  the  individuals  of 
the  city  and  State.  THOSE  STATES  WHICH  HAVE 
ONLY  ONE  MAIN  PORT  SHOULD  IN  PARTICULAR 
EXERT  THEMSELVES  TO  DEVELOP  IT  ALONG 
THE  BEST  MODERN  LINES,  AND  THE  FIRST 
STEP  IN  THIS  DIRECTION  IS  THE  APPOINT¬ 
MENT  OF  A  COMPETENT  PORT  AUTHORITY.” 
(H.  D.  109,  67th  Cong.,  1st  Session.) 

SAN  DIEGO,  CALIFORNIA 

Prior  to  1911  the  port  of  San  Diego  was  under  control  of 
the  State  Board.  At  that  time  it  was  ceded  to  San  Diego  and 
has  since  been  under  municipal  control. 

LOS  ANGELES,  CALIFORNIA 

This  harbor  is  constructed  from  an  open  roadstead,  and  is 
located  at  San  Pedro  Bay,  30  miles  from  the  center  of  the 
city.  The  Federal  Government  constructed  a  break-water  1,155 
feet  long,  creating  an  artificial  harbor.  In  1909  the  city  agreed 
to  expend  $10,000,000  on  the  harbor  within  10  years.  The 
administration  of  this  harbor  is  under  municipal  control. 

SAN  FRANCISCO,  CALIFORNIA 

The  port  terminals  of  San  Francisco  are  owned,  controlled 
and  operated  by  the  State  of  California  through  the  State 
Board  and  Harbor  Commission.  The  port  is  self-supporting 
and  was  constructed  at  an  original  cost  of  $13,000,000,  for 
which  the  State  authorized  a  bond  issue.  The  bill  creating  the 
port  provided  that  all  profits  accruing  above  its  operating 
expenses,  interest  on  bonds,  and  the  creation  of  a  sinking 
fund  for  certain  bonds  issued,  should  be  used  for  the  further 


28 


improvement  of  the  port.  For  the  year  ending  1920-1921  an 
appraisement  of  the  property  and  other  facilities  was  at  a 
value  of  $50,000,000.  It  has  40  modern  piers  providing  15 
miles  of  berthage  space.  It  is  already  self-supporting.  Its 
charges  are  the  loAvest  of  any  port  in  the  United  States.  Its 
average  annual  revenue  is  $2,500,000.  For  the  year  ending  1921 
it  made  a  profit  of  $665,782.07.  This  port  was  built  and  con¬ 
structed  after  overcoming  many  obstructive  tactics,  when  the 
development  was  first  proposed. 

PORTLAND,  OREGON 

This  is  an  inland  port  on  the  Williamette  River,  125  miles 
from  the  ocean  and  12  miles  above  its  confluence  with  the 
Columbia  River.  This  port  is  subject  to  both  municipal  and 
State  control. 

TACOMA,  WASHINGTON 

This  port  is  under  the  direct  control  of  the  municipality, 
and  funds  for  harbor  improvements  and  wharf  construction 
are  provided  by  bond  issue  by  the  city. 

SEATTLE,  WASHINGTON 

The  total  number  of  the  publicly  owned  terminals  at  the  port 
of  Seattle  is  much  less  than  at  the  ports  of  New  Orleans  and 
San  Francisco;  however,  such  rapid  progress  has  been  made 
in  public  ownership  and  operation  of  port  facilities,  it  is  now 
rated  among  the  principal  ports  of  the  country  in  this  respect. 
It  is  now  foremost  in  the  extent  and  variety  of  warehouse 
facilities.  The  port  is  administered  by  a  separate  and  inde¬ 
pendent  municipal  corporation,  created  by  an  act  of  the  State 
Legislature. 

BOSTON,  MASSACHUSETTS 

The  port,  since  1911,  has  been  under  control  of  a  board 
consisting  of  three  members  appointed  by  the  Governor  and 
known  as  the  Directors  of  the  Port  of  Boston.  This  act  of 


29 


the  State  Legislature  freed  the  commissioners  from  control 
of  the  municipality  and  of  the  State  Harbor  and  Land  Com¬ 
missioners.  The  State  of  Massachusetts  owns  1,227.51  acres 
of  water  frontage,  much  of  which  was  acquired  from  the  city 
of  Boston.  It  owns  all  the  water  area  of  the  harbor  below  the 
line  of  riparian  ownership. 

PROVIDENCE,  RHODE  ISLAND 

The  State  of  Rhode  Island,  in  1912,  built  a  State  dock  at 
Providence  costing  about  $1,000,000,  and  as  a  result  of  this, 
the  Fabre  Line  of  steam  ships  connecting  Hew  York  and  the 
Mediterranian  ports  made  it  a  port  of  call.  Also,  as  a  result 
of  this  an  immigration  port  has  been  established  there  and 
the  Portuguese  immigrants  as  a  class  are  coming  through  that 
port.  This  has  been  a  good  investment  for  the  State  financially. 
The  city  of  Providence  has  developed  a  large  water  frontage 
adjacent  to  this  State  property  for  general  terminal  purposes 
upon  which  it  has  spent  $1,108,281.86  and  $375,000  has  been 
appropriated  to  complete  the  terminal  facilities  owned  by  the 
city.  Last  year  its  income  from  one  dock  was  $36,000  for 
dockage  and  $16,000  for  wharfage. 

Why  should  not  Horth  Carolina  have  its  tide  water  harbor 
made  a  regular  port  of  call  and  an  immigration  port  ?  The 
harbor  is  thoroughly  well  adapted  for  such  port.  If  there  is 
anything  more  needed  than  another  in  Horth  Carolina,  it  is 
immigration  of  the  right  class  of  settlers.  That  is,  farmers 
who  will  buy  and  pay  for  their  own  small  farms;  who  know 
how  and  who  will  raise  agricultural  and  horticultural  products, 
who  will  raise  families  of  American  boys  and  girls  to  remain 
on  their  farms,  who  by  force  of  example  will  make  John 
Smith,  tenant,  disappear  through  absorption. 

PHILADELPHIA,  PENNSYLVANIA 

The  administration  of  the  port  of  Philadelphia  is  under 
municipal  control.  The  legislature  permitted  the  city  of 
Philadelphia  free  scope  of  action  within  its  own  limits,  but 


30 


required  the  city  to  work  jointly  with  the  other  municipalities 
along  the  river  in  all  matters  affecting  the  river  beyond  the 
city  limits. 

BALTIMORE,  MARYLAND 

Since  1908  the  administration  of  the  port  of  Baltimore  has 
been  under  municipal  control.  An  act  of  the  Legislature  of 
1921  conferred  upon  the  municipality  full  power  and  authority 
to  develop  the  port  on  Patapsco  River  and  establish  harbor 
lines,  provide  wharves  and  railroad  terminals.  The  Maryland 
Legislature  of  1920  passed  an  act  authorizing  the  city  of 
Baltimore  to  issue  stock  to  the  extent  of  $50,000,000  for  the 
improvement  of  the  port  by  a  commission  known  as  The  Port 
Development  Commission  and  gave  this  commission  a  right 
to  acquire  by  deed,  gift,  or  otherwise  any  lands  or  property 
rights,  easements,  or  franchise  for  the  proper  development  of 
the  port  of  Baltimore.  That  commission  is  at  the  present  time 
engaged  in  this  line  of  work,  and  has  employed  experts  to 
assist.  In  its  report  issued  March,  1922,  it  is  estimated  that 
it  will  expend  on  the  port  of  Baltimore  $10,000,000  per  year 
for  ten  years. 

CHARLESTON,  SOUTH  CAROLINA 

The  port  administration  of  Charleston  is  vested  in  the 
municipality.  Although  in  1916  the  city  owned  no  water  front 
used  for  terminals,  our  information  is  that  the  city  has  pur¬ 
chased  terminal  property  at  the  port  from  the  railroads  and 
the  United  States.  This  it  has  turned  over  to  the  Port  Ter¬ 
minal  Commission  to  operate,  develop  and  improve.  This, 
we  understand,  is  to  be  accomplished  through  municipal  fin¬ 
ancial  aid  and  the  work  is  being  rapidly  developed  under 
expert  supervision. 

JACKSONVILLE,  FLORIDA 

It  is  located  27.5  miles  from  the  mouth  of  St.  Johns  River. 
In  1913  the  city  authorized  a  bond  issue  of  $1,500,000  for  the 
construction  of  municipal  docks.  The  site  for  this  was  selected 


31 


largely  because  it  could  be  obtained  much  cheaper  than  others, 
could  be  improved  at  much  less  expense  and  could  be  connected 
by  a  short  terminal  railway  with  the  three  principal  railroads 
entering  the  city.  At  the  present  time  one  of  the  best  known 
experts  of  the  country  is  employed  by  the  city  in  carrying  out 
very  large  improvements  at  this  terminal. 

SAVANNAH,  GEORGIA 

Is  also  endeavoring  to  secure  legislative  authority  for  the 
construction  and  ownership  of  terminal  facilities.  This  was 
prevented  at  the  last  session  of  the  legislature  through  the 
competition  of  the  port  of  Brunswick. 

HOUSTON,  TEXAS 

The  port  at  Houston  is  on  Buffalo  Bayou,  and  is  connected 
with  the  sea  by  an  artificial  channel  25  feet  deep  and  50  miles 
long.  The  only  terminal  facilities  of  importance  are  owned 
by  the  city  of  Houston  and  the  administration  of  the  harbor  is 
vested  in  the  municipality. 

MOBILE,  ALABAMA 

The  city  of  Mobile  is  connected  with  the  Gulf  of  Mexico  by 
a  channel  33.5  miles  in  length,  which  passes  through  the 
Mobile  Biver  for  a  distance  of  5  miles,  and  through  the  Mobile 
Bay  for  the  remainder  of  the  distance.  The  city  of  Mobile 
owns  only  one  wharf  1,500  feet  long.  The  administration  of 
the  port  is  vested  in  the  City  Commission.  It  is  reported  that 
the  State  of  Alabama  is  now  expending  $10,000,000  for  port 
terminal  facilities  at  this  port. 

NEW  ORLEANS,  LOUISIANA 

The  port  of  Hew  Orleans  is  under  the  control  of  the  State 
Board  of  Harbor  Commission,  an  agency  of  the  State  of 
Louisiana.  The  greater  part  of  the  terminal  facilities  at  Hew 
Orleans  are  owned  and  controlled  by  the  State.  It  has  14.4 


32 


miles  of  water  frontage  on  both  banks  of  the  Mississippi  River 
under  the  control  or  direction  of  the  Board  of  Commissioners. 
It  has  grown  steadily  under  this  control  until  it  has  become 
the  second  port  in  the  United  States,  and  presents  a  very 
successful  example  of  public  ownership  and  operation  of  port 
facilities.  It  is  stated  to  be  the  best  equipped  and  codrdinated 
port  in  the  country.  It  has  invested  $600,000  in  cotton  ware¬ 
house  facilities  and  more  than  $1,000,000  in  grain  elevators. 
Its  reports  show  that  it  has  paid  interest  on  State  bonds  issued 
for  its  development  and  in  1920  had  a  balance  left  of  $500,000. 
Louisiana  has  put  up  nothing  but  her  credit. 

From  a  study  of  these  ports  we  conclude: 

First.  That  the  trend  in  this  country  is  toward  State  owned 
and  operated  terminals. 

Second.  That  the  cost  of  suitable  terminals,  as  a  rule,  is 
large,  but  the  expenditures  do  not  become  a  burden  on  the 
State  since  they  are  self-supporting  and  generally  profitable. 

Third.  That  those  terminals  which  are  State  owned  and 
operated  develop  business  for  the  port  and  the  State  more 
rapidly  and  certainly  than  those  owned  by  individuals  and 
corporations  and  with  less  friction,  and  they  can  be  most 
satisfactorily  and  successfully  constructed  at  points  where  the 
cost  is  small,  due  to  the  absence  of  similar  developments  pre¬ 
viously  made  by  railroads,  or  other  corporate  or  private 
interests. 

SHOULD  NORTH  CAROLINA  CONSTRUCT  ITS  OWN  PORT 

TERMINAL? 

In  order  that  we  may  understand  what  this  implies,  we 
quote  from  the  conclusions  of  The  Board  of  Engineers  for 
Rivers  and  Harbors  on  Water  Terminals  and  transfer  facilities 
as  follows  : 

“Our  review  of  the  port  situation  of  the  United  States  shows: 

“(1)  Ihat  there  is  not  in  most  of  them  a  well  coordinated 
management,  and  that  well  constituted  port  authority  is  the 
first  need. 


33 


“(2)  That  under  these  port  authorities  comprehensive  plans 
based  on  principles  hereinbefore  laid  down  should  be  evolved. 

‘‘(3)  That  a  port  can  only  be  successful  when  this  plan  is 
based  upon  the  business  available  in  its  tributary  area,  and 
brings  ample  railway  facilities  into  the  closest  practicable 
juxtaposition  with  the  water  front,  with  sufficiently  wide  areas 
available  for  cargo  classification. 

“(4)  That  with  the  increased  cost  of  labor,  mechanical  means 
should  be  adopted,  wherever  practicable,  for  handling  goods, 
and  that  such  means  should  be  at  hand  for  every  kind  and 
shape  of  package. 

“(5)  That  ample  railroad  tracks  should  be  available  close 
to  the  terminal  for  car  storage  and  car  classification. 

“(6)  That  ample  warehouse  capacity  should  he  provided, 
in  order  that  both  ships  and  cars  may  be  dispatched  in  the 
shortest  practicable  time.  Too  many  of  our  ports  are  lacking 
in  warehouse  facilities,  or  have  such  facilities  at  inordinate 
distance  from  the  terminal,  thus  involving  cartage  or  extra 
handling  for  local  railroad  haul. 

“(7)  Where  cartage  is  necessarily  a  feature  in  the  port 
business  roadways  and  loading  platforms  should  be  provided 
for  the  full  accommodation  of  trucks. 

“(8)  That  bunkering  facilities  of  such  character  as  to  supply 
the  necessary  fuel  to  the  ship  while  handling  cargo  should 
be  available. 

“(9)  That  ample  repair  and  dry  docking  facilities  should 
be  provided.  No  matter  how  ample  the  provision  of  terminal 
piers,  sheds,  railways,  and  mechanical  equipment,  a  port  will 
only  succeed  under  an  efficient  and  well  coordinated  manage¬ 
ment. H.  D.  109,  67th  Congress,  1st  Session. 

In  order  to  appreciate  what  the  Board  of  Engineers  had  in 
mind  in  their  review  of  the  port  situation  as  just  read  and  at 
the  same  time  form  some  idea  of  what  an  ocean  port  with 
modern  terminal  facilities  will  include  and  also  the  cost  ot 
same  we  direct  your  attention  to  the  fact  that  they  were 


— 3 


34 


▼a 


studying  water  transportation  and  the  means  that  may  be 
adopted  for  enhancing  its  economy. 

They  recognized  that  practically  the  limit  of  efficiency  in 
vehicles  for  long  distance  transportation,  whether  by  land  or 
water,  has  been  very  closely  approximated  and  that  for  further 
economies  to  the  shipper  in  getting  his  goods  to  their  market, 
it  must  be  largely  through  the  introduction  of  properly  designed 
terminals  incorporating  the  latest  and  most  efficient  appliances 
for  handling  traffic  of  the  character  and  volume  involved. 

As  they  state  “we  may  well  afford  to  emulate  such  examples 
as  those  of  Ne w  Orleans,  San  Francisco,  Seattle,  in  this  country, 
and  London,  Liverpool,  Manchester,  Hamburg  and  Antwerp 
in  Europe,  all  of  which  have  a  progressive  and  continuous 
port  policy  under  which  terminals  are  owned,  operated  and 
developed  by  the  public  through  organizations  representing 
the  whole  body  of  interested  citizens,  and  private  profit  or 
mere  selfish  advantage  has  no  place  in  the  general  scheme.” 

“A  well  equipped  port  will  provide  pilotage  where  necessary, 
tugs  for  towing  ocean-going  vessels  to  their  berths,  anchorage 
for  vessels  not  requiring  to  be  berthed,  with  access  to  shore, 
piers  or  wharves,  open  or  covered,  affording  direct  connection 
between  ocean  and  land  carriage,  storage  facilities  ranging 
from  open  ground  areas  for  bulk  materials  which  will  not 
materially  deteriorate  from  weather  exposure,  to  loft  building 
for  the  protection  of  perishable  cargo,  coal  and  oil  storage, 
with  supporting  piers  or  lighters  affording  bunkering  facilities, 
repair  shops  and  dry  docks  with  necessary  capacity  and  equip¬ 
ment  for  overhauling  and  repairing  ships,  lighters,  and  car 
floats  for  the  transfer  of  cargo  from  various  points  in  or  near 
the  harbor  to  and  from  ships,  accommodations  for  the  direct 
access  of  trucks,  and  in  some  instances  for  canal  and  river 
craft,  and,  most  important  of  all,  railroad  tracks  and  yards 
properly  located  and  adequately  provided  with  trackage  for 
storage  and  transfer  of  the  many  full  and  empty  railway  cars 
necessary  to  handle  to  and  from  ocean-going  ships  the  freight 
which  makes  up  their  cargo.” 


35 


In  this  State  we  will  not  be  required  to  construct  locks  and 
basins  as  in  certain  parts  of  Europe  where  the  tidal  variation 
is  large,  as  in  London  for  example.  But  we  must  consider  with 
great  care  the  determination  of  the  open  or  uncovered  quay, 
wharf  or  pier  as  to  whether  it  is  built  paralleling  the  water 
front  or  projecting  into  it.  Shall  it  depend  for  loading  and 
unloading  entirely  upon  ship’s  gear  or  will  it  be  provided  with 
mechanical  devices  for  handling  various  materials?  Of  course 
these  open  terminals  are  used  for  materials  that  will  not 
deteriorate  when  exposed  to  the  weather  but  there  are  many 
kinds  of  very  highly  specialized  machinery  for  handling  each 
particular  material. 

Commodities  in  bulk  which  need  protection  from  the  elements 
usually  require  special  construction  for  each  class  of  cargo. 
For  example,  a  special  class  of  terminal  is  required  for  petro¬ 
leum  and  the  various  mineral  oil  products  into  which  it  may 
be  divided.  For  these  special  provision  must  also  be  made  for 
fire  protection. 

In  the  shipment  of  grain  a  small  portion  of  it  is  handled 
in  sacks  but  the  great  bulk  of  it  is  handled  mechanically.  It 
must  be  handled  through  properly  constructed  grain  elevators 
which  contain  special  machinery  for  cleaning  the  grain  as 
well  as  for  transferring  it  from  the  elevator  to  the  ship. 
Where  it  is  imported  the  operation  is  reversed  and  special 
means  must  be  provided  for  transferring  it  from  the  ship  to 
the  elevator  or  cars. 

One  of  the  most  intricate  problems  is  connected  with  the 
handling  and  protection  of  miscellaneous  cargo  or  package 
freight.  This  includes  such  items  as  automobiles,  air  planes, 
machinery,  furniture,  pianos,  with  hogsheads  of  tobacco,  china 
ware,  etc. ;  bales  of  cotton,  jute,  oakum,  wool,  hides,  hay ; 
barrels  of  oil,  apples,  bottled  water ;  boxes  or  crates  of  canned 
goods,  dry  goods,  soap,  fresh  fruit,  arms  or  hardware ;  bags  of 
sugar,  salt,  coffee,  cement,  flour,  meal,  grain,  potatoes ;  such 
items  as  locomotives,  structural  steel  frames,  shapes,  bars, 
rails,  pipe,  pig  metals;  beef  in  quarters,  sheep  dressed;  live 


36 


animals,  etc.  When  it  is  considered  that  these  are  handled 
in  varying  quantities  and  on  the  same  ship  destined  to  different 
ports  the  seriousness  and  difficulty  of  economical  handling  can 
be  readily  appreciated.  With  the  increasing  cost  of  labor  the 
necessity  for  mechanical  handling  of  as  many  varieties  of 
package  freight  as  possible  is  recognized.  It  is  sufficient  for 
our  purpose  here  to  state  that  while  mechanical  devices  exist 
for  the  economical  handling  of  nearly  all  kinds  of  package 
freight,  yet  their  cost  is  far  from  negligible. 

Ample  warehouse  facilities  located  in  as  close  proximity 
to  the  pier  and  terminal  shed  as  practicable  must  be  provided. 
Among  the  most  economic  systems  of  warehouse  facilities  is 
to  be  found  in  the  loft  for  storage  space  over  the  transit  sheds. 
In  construction  of  these  mechanical  facilities  must  be  provided 
for  lifting  the  various  packages  to  the  upper  stories  and  for 
transferring  and  packing  them  in  compartments  provided  for 
each  class  of  package. 

There  is  sufficient  justification  for  providing  ample  transit 
shed  area  and  the  best  mechanical  equipment  since  any  excess 
affords  storage  space  for  cargo  always  in  demand  and  the 
quick  dispatch  of  a  first  class  cargo  ship  is  imperative  due 
to  the  great  expense  of  holding  it  in  port.  This  is  illustrated 
by  the  board  who  assumes  the  value  of  tonnage  at  $160  per 
dead  Aveight  ton.  This  makes  the  10,000  ton  ship  cost  $1,- 
600,000. 


Annual  interest  on  this  cost  at  6  per  cent  is _ $  96,000 

Repairs  and  maintenance  at  5  per  cent _  80,000 

Depreciation  at  3  and  %  per  cent _  53,000 

Insurance  at  4.2  per  cent _  67,000 


Total  expense - $296,000 

Fuel  expense _ $  33,000 

Port  compensation  for  officers  and  crew _  27,000 

Meals  in  port _  5,000 

Stores  in  port _  2,000 


A  total  expense  of  $1,000  per  day  or _ _ _ $363,000 


37 


Daily  charge  for  dockage _ $  350 

Stevedoring  -  650 


A  total  per  diem  of _ $  1,000 

i 

To  attract  investment  in  such  hazardous  enterprise  20  per 
cent  should  be  allowed  on  the  investment  or  a  per  diem  of 
$1,000.  Which  makes  the  total  cost  per  diem  of  holding  a 
10,000  ton  vessel  in  port  $3,000. 

For  convenience  we  have  noted  the  following  figures  as  to 
the  draft  of  vessels  in  1918-19.  From  Lloyd’s  Register  of 
14,513  steamships  listed  81.45  per  cent  have  a  draft  of  less 
than  25  feet,  and  99.32  per  cent  draw  less  than  30  feet,  leaving 
a  percentage  of  0.68  vessels  over  30  feet  draft. 

The  following  table  gives  the  draft  of  various  vessels,  also 
lengths : 


Tonnage 


Gross  Tons 
2,000  to  3,000 
4,000  to  5,000  _ 
7,000  to  8,000  _ 
9,000  to  10,000  . 
12,000  to  13,000 


Average 


Draft 

Length 

Feet 

Feet 

22 

270 

24.3 

270 

27.6 

377 

29.2 

400 

29.7 

560 

We  have  not  mentioned  with  any  detail  the  construction  of 
dry  docks  and  equipment  for  the  repair  of  ships  entering  the 
port  nor  have  we  gone  into  any  details  cohering  the  miscellan¬ 
eous  equipment  for  expediting  the  handling  of  freight.  We 
think  we  have  indicated  enough  to  demonstrate  that  an  ocean 
terminal  with  modern  facilities  is  an  expensive  or  costly 
proposition  in  the  aggregate.  We  have  a  copy  of  the  official 
document  which  covers  this  entire  subject  quite  sufficiently 
which  we  are  glad  to  turn  over  to  the  Commission  for  such 

use  as  they  may  see  fit  to  make  of  it. 

We  assume  that  your  Commission  before  committing  itself 
to  recommendations  will  consult  not  only  such  authorities  cited 
by  us  but  real  experts  in  port  terminal  construction.  May  we 


38 


add  that  our  information  is  that  the  number  of  these  who  are 
competent  to  outline  a  complete  set  of  terminals  is  very  limited 
but  we  are  assured  that  the  United  States  Corps  of  Engineers 
stands  ready  at  all  times  to  furnish  every  assistance  possible 
to  you  in  practically  every  phase  of  your  work  and  this  Corps 
has  made  very  extensive  and  thorough  investigations  of  this 
entire  subject. 

We  assert  and  hope  to  show  that  if  the  State  will  establish 
port  terminals  at  its  only  deep  water  harbor  for  a  coaling 
station  alone,  the  cost  of  the  construction  of  the  terminal 
facilities  for  such  coaling  station  will  be  paid  for  within  two 
years,  through  the  reduced  rates  on  transportation  of  coal 
alone,  and  naturally  that  it  will  also  result  in  an  immense 
increase  in  the  volume  of  traffic.  But  leaving,  out  of  considera¬ 
tion  any  financial  benefits  to  accrue  from  such  terminal  facili¬ 
ties,  we  feel  that  the  best  interests  of  the  State  demand  the 
construction  of  a  terminal,  with  suitable  terminal  facilities, 
at  this  harbor,  and  in  addition  we  must  do  everything  else 
necessary  to  make  it  a  basic  rate-making  port  of  entry ,  so 
recognized  and  officially  declared. 

We  deem  it  of  importance  here  to  establish  a  clear  concep¬ 
tion  of  the  terms  we  are  using.  The  terminal,  as  its  name 
implies,  is  understood  to  be  the  end  of  a  movement  in  trans¬ 
portation.  The  most  important  of  these  is  where  the  railroad 
line  meets  the  steamship  line.  It  involves  the  transportation 
of  both  passengers  and  goods  transferred  from  the  land  carrier 
to  the  ocean  carrier,  or  vice  versa.  It  is  essentially  a  funnel 
through  which  everything  must  pass  and  therefore  becomes 
the  most  important  link  in  the  chain  of  transportation  of  pas¬ 
sengers  and  goods  by  sea  and  land. 

Terminal  facilities  are  all  those  arrangements,  mechanical 
and  otherwise,  which  facilitate  the  transfer  of  passengers  and 
goods  at  either  end  of  any  stage  or  journey. 

A  port  may  be  considered  a  mechanism  for  accomplishing 
the  interchange  of  freight  and  passengers  between  land  and 
water  cariieis,  and  the  volume  of  freight  which  this  mechanism 


39 


carries  will  depend  on  a  number  of  controlling  factors,  such 
as  through  rates,  time,  deep  water  berthage,  storage  space, 
terminal  yards,  railroad  connections,  freight  handling  facilities, 
efficiency  of  traffic  forces  and  operation. 

The  ever  increasing  demands  for  reduced  cost  in  transporta¬ 
tion  have  forced  ocean  vessels  to  constantly  increase  their  size 
and  draft.  The  same  influences  have  caused  the  railroads  to 
lower  their  cost  of  transportation  by  lessening  their  grades, 
increasing  their  motive  power  and  the  capacity  of  their  equip¬ 
ment,  and  the  same  factors  have  operated  and  caused  enormous 
expenditures,  both  public  and  private,  in  the  deepening  of 
the  waters  of  the  ocean  ports  and  the  channels  leading  to  them. 
The  ever  increasing  volume  of  traffic  by  land  and  sea  is  con¬ 
stantly  congesting  our  existing  ports  in  this  country,  in  spite 
of  the  enormous  expenditures  in  increased  terminal  facilities. 
In  our  larger  ports,  such  as  Hew  York,  Boston,  Philadelphia, 
Norfolk,  San  Francisco,  Seattle  and  Hew  Orleans  this  con¬ 
gestion  is  very  serious,  and  in  lesser  degree  the  same  is  true  as 
to  all  of  our  ports.  In  spite  of  these  large  expenditures  they 
are  unable  to  meet  the  demands  of  commerce,  so  that  at  any 
point  on  our  coast  line  where  the  physical  and  economic  con¬ 
ditions  will  warrant,  if  a  new  port  with  suitable  facilities  is 
established,  there  will  be  ample  business  for  such  port  just  as 
soon  as  its  existence  and  facilities  are  brought  to  the  attention 
of  the  shipping  world.  This  involves,  of  course,  constant  and 
suitable  advertisement  of  such  port  with  its  facilities,  in  con¬ 
formity  with  the  practice  of  all  other  ports  now  in  existence. 

In  illustration  we  invite  attention  to  Manchester,  England. 
This  inland  city  spent  eighty  million  dollars  to  complete  a 
35  mile  ship  canal  around  Liverpool  and  to  construct  a  port 
with  modern  terminal  facilities.  Their  next  proposition  was 
how  to  get  established  business  to  leave  the  old  via  Liverpool 
route  and  pass  through  Manchester.  The  traffic  department  of 
the  canal  company  first  induced  certain  steamship  lines  to 
come  to  Manchester;  then  arranged  with  railroads  for  lower 


40 


rates  on  the  basis  of  a  much  shorter  haul  from  the  centers 
of  industries  to  Manchester ;  then  secured  allowances  to  the 
belt  line  of  the  port  from  the  railroads,  which  made  it  self- 
sustaining  ;  then  so  fixed  harbor  dues  and  charges  as  to  create 
a  financial  inducement  to  shippers  to  route  via  Manchester ; 
then  employed  and  sent  traffic  solicitors  from  Manchester  to 
the  manufacturing  centers  who  demonstrated  that  the  ocean 
rate  out  of  Manchester  would  be  the  same,  but  that  they  had  a 
lower  rail  rate  to  Manchester  which  placed  his  goods  alongside, 
while  the  shipper  via  Liverpool  must  undergo  heavy  expense 
of  carting  and  handling.  The  prosperity  of  Manchester  resulted 
as  much  from  good  salesmanship  as  from  the  excellence  of  the 
port  itself.  Manchester  demonstrated  that  traffic  flowing 
through  a  large  port  can  be  changed  by  good  salesmanship  on 
the  part  of  the  smaller  port. 

In  illustration  of  the  congestion  at  port  terminals  and  the 
expense  of  passing  through  them,  of  the  enormous  general  traffic 
of  this  country,  we  invite  your  attention  to  what  is  known  as 
the  Great  Lakes-St.  Lawrence  Ship  Channel,  which  has  been 
investigated  by  a  joint  International  Canadian  and  United 
States  Commission  and  its  construction  recommended  by  this 
Joint  Commission  at  a  cost,  when  completed,  of  $252,000,000. 

The  purpose  is  to  reduce  the  transportation  charges  upon 
farm  and  other  products  of  the  Middle  West  to  Liverpool. 
This  investigation  and  the  present  agitation  for  its  construction 
comes  from  the  producers  and  exporters  of  the  Middle  West.  It 
is  claimed  that  it  will  save  the  farmers  many  million  dollars 
per  year.  The  route  now  employed  for  this  general  traffic  is 
either  all  rail  to  Hew  York  and  through  Atlantic  and  Gulf 
ports,  or  part  water  and  part  rail  via  the  Great  Lakes  and  the 
Erie  Canal  to  Hew  York,  or  by  water  via  Montreal,  employing 
the  St.  Lawrence  route,  which  at  present  involves  transfers 
at  Buffalo  and  also  at  Montreal,  which  is  very  expensive.  If 
ocean-going  ships  could  be  admitted  to  the  Great  Lakes,  a  very 
great  saving  would  result.  At  present,  however,  there  is  a 
barrier  in  the  St.  Lawrence  River  between  Lake  Ontario  and 


41 


Montreal  preventing  ocean-going  vessels  from  entering  the 
Lakes.  This  barrier  consists  of  rapids  at  various  points  in  the 
river,  aggregating  in  length  about  46  miles. 

Of  course  the  great  aim  of  all  developments  such  as  the 
construction  of  railways,  canals,  ports,  terminals,  etc.,  has 
been  to  reduce  the  cost  of  distribution.  With  all  of  our  efforts 
in  developing  a  system  of  Continental  Kailways,  with  a  con¬ 
stant  improvement  of  our  highways  and  port  terminal  facilities, 
and  with  a  more  limited  development  of  our  inland  waterways, 
the  cost  of  transportation  has  increased.  The  burden  of  this 
increased  transportation  cost  necessarily  falls  upon  the  pro¬ 
ducer  and  consumer.  This  condition  is  largely  due  to  New 
York  City,  the  commercial  and  financial  center  of  America, 
and  the  gatekeeper  of  our  traffic.  About  one-half  of  our 
commerce  of  today  passes  through  the  port  of  JNTew  York  City. 
Her  rail  terminals  handle  5,769,000  cars  of  freight  per  year 
and  the  pre-war  cost  per  car  was  $25.00  over  that  of  Chicago, 
the  next  most  expensive  port,  or  an  excess  charge  of  $150,000,000 
per  year  which,  with  increased  tonnage  and  increased  costs, 
today  will  amount  to  at  least  $250,000,000.  This  has  been 
called  a  tribute  to  the  graft,  piracy  and  inefficiency  that  must 
be  paid  to  that  port  by  the  merchants,  manufacturers  and 
farmers.  At  this  port  there  is  an  excess  charge  within  the  city 
Lmits  of  over  $4.00  per  ton  on  all  traffic.  As  the  total  tonnage 
is  115,000,000  tons,  this  excess  charge  is  at  least  $460,000,000 
per  year  and  is  due  largely  to  the  inadequacy  and  inefficiency 
of  the  terminal  facilities  and  transportation  shortcomings  of 
our  leading  port.  This  is  costing  the  farmers  of  the  middle 
west  at  least  five  cents  a  bushel,  the  difference  between  profit 
and  loss  to  many  of  them,  and  amounts  to  $200,000,000  a  year, 
a  tribute  to  the  congestion  in  freight  traffic  due  to  lack  of 
modern  port  terminal  facilities.  Hew  Tork  is  not  the  only 
expensive  and  badly  congested  port.  It  is  merely  the  worst. 

It  is  this  situation  as  to  congested  terminals  and  the  exces¬ 
sive  costs  connected  with  our  greatest  port  that  has  brought 
about  this  agitation  for  the  international  waterway  through 


42 


Canada.  Of  course  we  do  not  think  that  this  international 
waterway  along  the  St.  Lawrence  will  be  constructed  with 
American  capital  for  many  years  if  ever.  This  because  New 
York  City  will  be  forced  to  adhere  to  her  policy,  since  she 
became  a  port,  of  holding  on  to  this  commerce  for  our  own 
country.  Then,  too,  its  construction  will  he  opposed  by  our 
labor  unions  who  will  not  relish  having  American  millions 
spent  on  foreign  construction  by  foreign  labor.  Then,  too,  it  is 
believed  that  personal  interest  will  cause  all  other  Atlantic 
coast  ports  of  the  United  States,  who  have  connections  with  our 
great  middle  west  territory,  to  join  with  New  York  in  her 
opposition. 

In  this  connection  we  note  from  the  press  that  the  City 
Commissioners  of  Bayonne,  New  Jersey,  will  have  brought  to 
their  consideration  today  a  proposition  from  the  New  York 
Terminal  Company  to  construct  a  new  water  front  of  6,000 
feet  in  length  with  bulkheads,  piers,  terminal  warehouses, 
railroad  freight  houses  and  factory  buildings,  ferry  terminals 
for  a  ferry  to  connect  Bayonne  with  New  York  City.  This 
proposed  development  is  to  cost  $150,000,000,  and  provides  for 
railroad  connections  with  every  railroad  running  into  New 
York  City.  The  piers  are  to  accommodate  the  largest  vessels 
now  afloat.  Incidentally  it  is  suggested  that  with  an  invest¬ 
ment  of  $25,000,000,  the  income  from  the  terminals  will  enable 
the  construction  of  all  of  the  rest  of  the  terminal  facilities  as 
needed. 

In  order  that  you  may  comprehend  the  influences  that  are 
agitating  for  improved  terminal  facilities  for  the  United  States, 
we  remind  you  that  the  area  tributary  to  the  Great  Lakes  has 
a  population  of  40,000,000  people.  In  this  area  is  raised  70 
per  cent  of  all  the  wheat,  60  per  cent  of  all  the  corn,  SO  per 
cent  of  all  the  oats,  and  70  per  cent  of  all  the  barley  grown 
in  the  United  States.  In  manufactured  products  we  find  89 
per  cent  of  all  the  automobiles,  69  per  cent  of  all  the  meat 
products  and  58  per  cent  of  all  the  flour  produced  in  the  United 
States.  Our  average  export  of  wheat  and  flour  is  more  than 


43 


200,000,000  bushels  per  year,  practically  all  of  it  from  this 
area.  What  is  true  of  our  wheat  is  true  in  lesser  degree  of  all 
other  grain. 

A  very  important  point  we  desire  to  emphasize  in  this  connec¬ 
tion  is  that  under  existing  conditions  we  cannot  hope  to  com¬ 
pete  for  any  of  this  enormous  amount  of  freight  that  is 
strenuously  seeking  for  some  outlet  to  the  ocean  because  we 
have  no  ocean  port  with  adequate  modern  terminals  that  will 
enable  us  to  compete  successfully  even  with  these  congested 
ports.  If,  however,  we  of  the  State  of  North  Carolina,  will 
provide  such  port  with  suitable  facilities  and  under  public 
administration  there  is  no  reason  why  our  port  should  not 
receive  its  full  share  of  this  tremendous  middle  west  freight. 
Of  course  we  must  have  railroads  connecting  this  ocean  terminal 
with  this  freight  producing  territory  and  we  must  have  at  least 
practically  the  same  length  of  haul  in  order  to  successfully 
compete  but  fortunately  for  the  State  we  can  have  a  freight 
distance  that  is  even  shorter  than  other  Atlantic  ports  as  we 
will  show  you  later  on. 

EXISTING  RAILROADS  AND  THEIR  CONNECTIONS 

There  are  five  railroads  entering  the  Cape  Fear  tidal  basin 
at  Wilmington.  Four  of  these  belong  to  the  Atlantic  Coast 
Line  system  and  one  to  the  Seaboard  Air  Line.  The  Atlantic 
Coast  Line  and  the  Seaboard  Air  Line  enter  Wilmington  from 
the  west  and  south  via  Navassa.  From  this  point  they  enter 
Wilmington  over  the  tracks  and  two  bridges  across  the  Cape 
Fear  and  Northeast  rivers  belonging  to  the  Wilmington  Rail¬ 
way  Bridge  Company,  a  separate  corporation. 

The  old  C.  F.  and  Y.  V.  Ry.  formerly  ran  to  Point  Peter 
at  the  junction  of  these  two  rivers  but  now  it  enters  Wilmington 
over  the  tracks  of  the  Wilmington  Railway  Bridge  Company 
and  the  bridge  over  the  Northeast  River. 

The  Wilmington,  Brunswick  and  Southern  Ry.  extends  from 
the  tidal  basin  at  Southport  to  Navassa  and  from  that  point 


44 


is  carried  into  Wilmington  by  the  Atlantic  Coast  Line  and  its 
trains  returned  to  ITavassa  by  the  same  road.  The  owners  of 
this  road  have  given  written  assurance  that  should  terminal 
facilities  be  established  at  Southport  by  the  State  ample 
facilities  will  be  provided  for  meeting  and  caring  for  increased 
traffic  due  to  such  terminals.  This  is  construed  to  mean  that 
they  will  double  track  their  thirty  miles  of  road  and  provide 
every  essential  for  prompt  dispatch  of  traffic. 

It  will  be  noted  that  this  W.  B.  and  S.  Ry.  makes  actual 
physical  connection  at  JNTavassa  with  the  Atlantic  Coast  Line 
Ry.  Since  the  Seaboard  Air  Line  also  passes  over  the  tracks 
of  the  Wilmington  Railway  Bridge  Company  it  also  makes 
practical  connection  with  this  line.  The  same  is  true  as  to  the 
C.  F.  and  Y.  V.  Ry.  at  Point  Peter.  It  seems  to  us  that  to 
all  intents  and  purposes  this  should  be  considered  as  an  actual 
and  practical  physical  connection  by  the  W.  B.  and  S.  Ry.  with 
all  three  of  these  lines.  If,  however,  there  be  any  question  about 
this  physical  connection  the  matter  can  be  very  readily  ac¬ 
complished  by  the  State  taking  over  the  W.  B.  and  S.  Ry., 
which  we  believe  should  be  done  if  terminals  are  constructed, 
and  also  take  over  the  holdings  of  the  Wilmington  Railway 
and  Bridge  Company.  This  can  be  done  by  lease  or  otherwise 
and  we  feel  assured  that  in  the  absence  of  satisfactory  working 
arrangements  between  the  port  or  State  and  existing  roads  this 
taking  over  and  operating  these  two  properties  will  practically 
solve  the  railroad  connections  for  the  port  at  Southport. 

It  is  claimed  that  this  road  (W.  B.  &  S.)  can  now  accept 
traffic  at  Havassa,  FT.  C.,  and  deliver  it  to  docks  at  the  mouth 
of  the  Cape  Fear  River  as  quickly  and  probably  quicker  than 
the  same  traffic  can  be  delivered  at  the  docks  which  it  is  pro¬ 
posed  to  have  the  State  take  over  at  Wilmington,  and  at  less 
cost. 

It  is  claimed  also  that  ocean  freight  discharged  at  the  mouth 
of  the  river  at  Southport  for  the  interior  of  the  State  can  be 
shipped  by  rail  and  be  enroute  beyond  Havassa  as  soon  as  the 
discharging  vessel  can  tie  up  at  the  wharf  at  Wilmington. 


45 


In  some  cases  such  freight  could  reach  Charlotte  before  the 
discharging  vessel  can  begin  unloading  at  Wilmington. 

We  have  direct  rail  connections  with  the  entire  south  and 
north  through  our  North  Carolina  trunk  lines :  The  Atlantic 
Coast  Line,  Seaboard  Air  Line  and  Southern  Railway.  Through 
these  lines  we  have  direct  connection  with  lines  leading  from 
the  West  and  Ohio  River  through  the  coal  fields  of  Virginia, 
West  Virginia,  Tennessee  and  Kentucky  through  the  Norfolk 
and  Western  via  Winston-Salem,  Sanford,  Navassa,  and  through 
the  Carolina,  Clinchfield  and  Ohio  Ry.,  through  Bostic  and  the 
Seaboard  Air  Line  Ry.  to  Navassa,  is  presented  an  opportunity 
to  reach  the  immense  traffic  of  the  middle  west  and  west  and 
the  coal  fields  that  seek  tide  water.  In  a  word,  we  have  direct 
rail  connections  with  all  of  the  grain  producing  states  via  our 
three  trunk  lines,  the  Carolina,  Clinchfield  and  Ohio  and  the 
Norfolk  and  Western. 

Brief  History  of  East  and  West  Trunk  Line  Railways  in  North  Carolina 

On  December  24,  1852,  the  General  Assembly  of  North 
Carolina  incorporated  the  Western  Railroad  to  be  built  from 
the  seaport  of  Wilmington  west  along  the  stage  course  route 
across  the  State  into  the  coal  fields  of  Virginia  and  connecting 
with  the  great  trunk  lines  leading  to  St.  Louis  and  Cincinnati. 

This  road  was  financed  by  individual  subscriptions,  by  coun¬ 
ties,  towns  and  the  State.  Some  of  our  counties  and  cities  are 
today  paying  interest  on  these  bonds,  not  having  been  able  to 
retire  them  and  charge  off  their  loss.  Our  State  had  an  interest 
of  1,100,000  in  this  development. 

From  1852  to  1893  this  road  (then  the  Cape  Fear  and  Yadkin 
Valley)  had  been  extended  from  Wilmington  on  the  coast  to 
Mt.  Airy,  at  the  foot  of  the  mountains,  a  distance  of  2^4.2S 
miles — with  side  tracks  and  branches  its  total  length  of  tiackage 
was  365.85  miles.  The  equipment  inventoried  about  five 

million. 

This,  then,  was  the  longest  single  line  railroad  in  the  State  of 
North  Carolina  and  as  such  was  handling  from  60  to  65  per  cent 


46 


of  the  business  at  Greensboro  and  Fayetteville. 

Its  connections  were  as  follows :  At  Wilmington,  the  A.  C.  L., 
the  S.  A.  L.,  and  Clyde  Water  Line;  at  Fayetteville,  the  A.  C.  L., 
and  the  Cape  Fear  River;  at  Sanford,  the  S.  A.  L. ;  at  Greens¬ 
boro,  the  Richmond  &  Danville;  at  Rural  Hall,  the  Richmond 
&  Danville;  at  Walnut  Cove,  the  Norfolk  &  Western;  at  Madi¬ 
son,  the  Norfolk  &  Western. 

In  1887  Mr.  J.  B.  Bilheimer,  of  New  York  City,  with  Mr. 
E.  B.  Stevens,  of  Chicago,  entered  into  an  agreement  with  the 
South  Atlantic  and  North  Western  Railroad  Corporation,  duly 
created  and  existing  under  and  by  virtue  of  the  laws  of  the 
States  of  Tennessee  and  North  Carolina  under  articles  of  con¬ 
solidation  duly  entered  into  by  and  between  the  North  Carolina 
and  Tennessee  Railroad  Company  and  the  South  Atlantic  and 
North  Western  Railroad  Company,  on  the  12th  day  of  Febru¬ 
ary,  1887,  under  which  agreement  the  party  of  the  first  part 
was  to  build  and  equip  the  South  Atlantic  and  North  Western 
Railroad  from  a  point  on  the  South  Atlantic  sea  coast  at  or 
near  the  town  of  Smithville,  in  the  State  of  North  Carolina, 
in  and  through  said  State  in  a  northwestwardly  direction,  and 
through  the  State  of  Tennessee  in  the  general  direction  of 
Bristol,  or  to  such  other  point  or  place  in  said  State  as  may 
hereafter  be  determined  upon  as  the  terminal  of  said  railroad 
in  said  State.  This  road  was  surveyed  and  definitely  located. 
The  several  counties  through  which  this  road  was  to  pass  were 
to  issue  bonds;  the  principal  object  of  this  bond  issue  was  to 
convince  the  English  syndicate  who  was  to  take  over  the  con¬ 
struction  of  the  road  that  the  people  of  the  various  counties 
through  which  it  passed  were  in  sympathy  with  and  would 
support  a  railroad.  The  project  failed  because  of  the  failure 
of  Barring  Bros.,  of  London. 

The  South  Atlantic  and  North  Western  Railroad  Company 
which  began  at  Southport  and  ran  through  Brunswick,  Robeson, 
Stanly,  Rowan,  Davie,  Yadkin,  Ashe  and  Watauga  counties  in 
North  Carolina  and  through  Johnson,  Carter  and  Sullivan 
counties,  Tennessee,  to  Bristol,  Tennessee,  a  distance  of  362 


47 


miles,  connecting  at  that  place  with  the  South  Atlantic  and 
Ohio  Railroad,  thus  forming  a  trunk  line  from  the  coast  to 
Cincinnati.  Please  note  that  this  projected  line  connects  the 
so-called  LOST  PROVINCES  of  our  northwestern  border  with 
the  equally  lost  province  of  the  southeast — Brunswick  County. 
The  construction  of  this  road  was  actually  opposed,  according 
to  information  we  have  received,  in  every  way  by  the  railroads, 
and  particularly  by  the  Atlantic  Coast  Line.  These  interests 
had  their  agents  at  work  in  the  various  counties  to  prevent  the 
passage  of  the  bond  issue. 

In  1887  Mr.  E.  B.  Stevens,  at  one  time  president  of  the 
Chicago  Board  of  Trade,  who  had  just  moved  to  Southport 
became  so  impressed  with  the  harbor  as  an  ocean  outlet  that 
in  1894  he  succeeded  in  forming  a  company  known  as  “THE 
SOUTHPORT-CHICAGO  SYNDICATE.”  The  purposes  of 
this  syndicate  were:  “To  organize  a  terminal  company  under 
a  charter  from  the  State  of  North  Carolina  and  to  build,  equip 
and  operate  a  railroad  from  Southport  westward  by  way  of 
Conway,  South  Carolina,  to  Camden  in  the  same  State,  about 
150  miles,  for  the  purpose  of  connecting  at  the  latter  point  with 
the  Ohio  River  and  Charleston  Railroad,  now  completed  and  in 
operation  172  miles  to  Marion,  North  Carolina,  and  located, 
extensively  graded  and  under  construction  from  Marion  through 
portions  of  the  states  of  Tennessee  and  West  Virginia  to  the 
coal  regions  of  Eastern  Kentucky,  there  connecting  with  another 
completed  portion  of  the  Ohio  and  Charleston  at  Whitehouse, 
Kentucky,  and  thence,  by  arrangement  with  the  Chesapeake  & 
Ohio  Railroad,  to  Cincinnati.” 

Although  the  promoters  of  this  railroad  executed  a  contract 
with  some  English  capitalists  to  take  over  the  construction  of 
the  road,  with  the  ocean  terminals,  and  these  English  capitalists 
received  a  favorable  report  from  their  own  expert  agent  sent 
over  to  check  up  the  facts  and  conditions,  violated  the  contract 
at  the  last  minute  without  explanation,  leaving  the  promoting 
company  so  crippled  financially  that  the  project  was  again 
dropped.  W"e  are  advised  that  railroad  interests  in  the  State 


48 


again  vigorously  opposed  the  construction  of  this  road  from 
its  inception. 

Later  on  the  C.  C.  &  O.  Ry.,  now  connecting  with  the  Sea¬ 
board  Air  Line  Ry.  at  Bostic,  N.  C.,  was  projected  to  reach 
tide  water  at  the  mouth  of  the  Cape  Fear  River,  and  the 
company  actually  secured  river  frontage  for  the  contruction  of 
terminals  at  Southport,  N.  C.,  which,  it  is  reported,  are  still 
owned  by  the  company.  This  project  was  never  completed 
because  the  controlling  spirit  of  the  company  sold  his  interest 
for  a  sufficient  sum  to  compensate  him  for  giving  up  the  project. 
It  may  well  be  asked  whether  the  inside  history  of  this  railway 
indicates  opposition  to  the  construction  of  terminals  through 
an  east  and  west  railway  trunk  line  to  the  only  ISTorth  Carolina 
deep  water  harbor. 

For  information  we  turn  now  to  the  C.  F.  &  Y.  Y.  Ry.,  and 
note  why  the  north  and  south  trunk  lines  have  not  stood  for 
this  east  and  west  road  cutting  into  their  long  north  and  south 
hauls.  We  find  that  three  of  them,  the  Southern,  the  Atlantic 
Coast  Line  and  the  Seaboard,  proceeded  to  buy  up  the  bonds 
of  the  C.  F.  &  Y.  Y.  and  forced  the  road  into  the  hands  of  a 
receiver.  How  well  they  succeeded  is  known  to  every  shipper 
in  North  Carolina.  They  not  only  partitioned  the  carcass 
among  themselves,  but  they  have  taken  effective  measures  to 
see  that  it  remains  a  lifeless  thing  as  an  east  and  west  trunk 
line.  A  ride  over  this  road  from  Mt.  Airy  to  Wilmington  today 
will  convince  anyone  of  the  completeness  of  their  destruction. 
Roadbed  grown  up  in  weeds,  mostly  dirt  ballast,  buildings 
without  paint  for  nine  years,  grades,  etc.,  as  they  were  made 
by  pick  and  shovel  years  ago,  terminals  abandoned  or  put  to 
other  uses.  Note  also  that  all  efforts  to  establish  an  east  and 
west  line  through  North  Carolina  have  been  broken  up  by  these 
same  selfish  North  and  South  carriers  and  for  the  same  reasons. 

What  this  State  would  have  accomplished,  had  it  not  been 
for  the  eliminating  of  the  C.  F.  &  Y.  Y.  cannot  be  visualized — 
being  friendly  with  the  Clyde  Line  would  have  kept  open  one 
port  on  the  east.  On  the  west  the  N.  &  W.  was  more  than 


49 


I 


friendly.  They  were  actually  building  a  road  over  the  moun¬ 
tains  beyond  Mt.  Airy  for  a  direct  connection  with  this  line. 
What  both  roads  thought  of  this  connection  can  best  be  told 
by  quoting  part  of  reports  of  President  Julius  A.  Gray  to 
C.  F.  &  Y.  Y.  stockholders  at  various  meetings  as  follows : 

At  the  annual  meeting  April  6,  1882 : 

“Submitted  to  Governor  Jarvis  a  proposition  for  the  purchase 
of  the  State’s  stock  in  the  Cape  Fear  and  Yadkin  Yallev  Rail¬ 
way,  with  a  view  to  making  it  a  part  of  the  great  trunk  line 
from  Cincinnati  to  Wilmington.  The  magnificence  of  the 
scheme,  the  incalculable  benefits  to  accrue  to  North  Carolina 
in  the  development  of  her  varied  resources,  by  opening  up  a 
great  highway  for  three  hundred  miles  across  her  territory, 
from  her  northwestern  boundary  to  the  port  of  Wilmington, 
bringing  her  in  direct  communication  with  the  great  valleys 
of  the  Ohio  and  Mississippi,  and  giving  to  our  own  Atlantic 
seaports  the  advantage  of  export  trade  of  the  vast  grain  and 
meat  markets  of  the  West,  opening  up  to  view  the  possibility 
of  a  grander  stride  in  material  progress  than  we  had  even 
dared  hope  for  in  the  life  of  the  present  generation.” 

“It  is  not  to  be  wondered  at,  then,  that  those  proposing  to 
do  such  great  things  for  us  were  most  cordially  received  and 
respectfully  listened  to  by  the  people  of  our  State  generally, 
and  especially  so  by  those  most  interested  in  the  Cape  Fear 
and  Yadkin  Valley  Railway.  Every  encouragement  was  given 
them  to  go  forward  with  the  enterprise,  and  every  assurance  of 
the  hearty  cooperation  of  our  State  authorities  and  of  the 
people  of  North  Carolina.” 

At  annual  meeting,  April  5th,  1883: 

“As  now  projected,  it  embraces  a  continuous  line  of  railway 
for  250  miles  in  the  direct  route  from  Cincinnati  to  W  ilming- 
ton  with  the  assurance  of  the  ultimate  connection  of  those  cities 
by  a  road  more  than  one  hundred  miles  shorter  than  any  otliei 
from  Cincinnati  to  seaboard,  and  bisecting  the  great  North 
and  South  lines  passing  through  the  State.” 

At  meeting  held  October  2,  1890: 


— 4 


50 


“The  connection  to  which  we  look,  however,  for  the  greatest 
increase  of  traffic  is  with  the  Norfolk  and  Western  Railroad 
at  the  Virginia  State  line,  seven  miles  northwest  of  Mr.  Airy. 
As  has  already  been  stated,  your  part  of  the  connecting  link 
has  been  graded  and  is  now  ready  for  the  bridges  and  super¬ 
structure.  Of  the  forty-two  miles  to  be  built  by  the  Norfolk 
and  Western,  sixteen  are  completed  and  in  operation,  leaving 
twenty-six  miles  which,  we  are  informed,  has  been  let  to  con- 
tract,  and  will  be  vigorously  pushed  to  completion.  It  is  im¬ 
possible,  at  this  time,  to  estimate  the  benefits  which  will  accrue 
to  your  road  from  this  connection.  With  the  completion  of 
their  Ironton  extension,  it  gives  you  the  shortest  line  from 
Cincinnati  and  the  great  empire  of  the  Northwest  to  the 
Atlantic  Ocean.  In  exchange  for  your  rice,  naval  stores,  lum¬ 
ber,  tobacco,  cotton  fabrics,  granite  and  brownstone,  it  give 
you  meat,  grain,  flour,  livestock,  farming  implements,  furniture 
and  coal.  The  distribution  of  these  supplies  for  consumption 
along  the  350  miles  of  your  own  road  alone,  will  be  an  immense 
traffic,  but  may  we  not  expect  that,  in  addition  to  all  this, 
Wilmington  may  soon  become  the  ocean  outlet  for  at  least  a 
portion  of  the  surplus  products  of  that  vast  territory  which 
finds  a  market  in  foreign  countries,  and  the  inlet  for  the  pro¬ 
ducts  of  South  America  and  the  West  Indies,  which  find  a 
market  in  the  Northwest.” 

President  Kimball  of  the  N.  &  W.  in  his  annual  report  to 
its  stockholders,  on  December  31,  1890,  said  as  follows: 

“Of  the  North  Carolina  extension  there  yet  remains  to  be 
constructed  thirty  miles,  of  which  eight  miles  is  partly  com¬ 
pleted,  and  surveys  for  the  remaining  twenty-two  miles  have 
been  in  progress  during  the  year.  It  is  very  desirable  that  this 
extension  be  completed  and  the  connection  made  with  the  Cape 
Fear  and  Yadkin  Valley  Railway  as  early  as  practicable,  in 
order  that  the  line  may  be  in  active  operation  and  business 
developed  prior  to  the  opening  of  the  World’s  Columbian 
Exposition  in  Chicago.  The  line  that  will  be  formed  by  your 
Ohio  and  North  Carolina  extensions  will  be  the  shortest  and 


51 


most  direct  route  between  the  South  Atlantic  States,  Chicago 
and  the  Northwest.” 

President  W.  A.  Nash  of  the  C.  F.  &  Y.  Y.  stated  to  its 
stockholders  at  a  meeting  held  October  1,  1891 : 

“Your  board  expected  at  this  annual  meeting  to  be  able  to 
report  an  early  completion  of  the  North  Carolina  extension  to 
the  Norfolk  and  Western  Railroad,  which  proposes  to  connect 
with  your  road  at  the  North  Carolina  and  Virginia  State  line. 
While  the  extension  has  not  been  built  as  rapidly  as  we  had 
hoped,  on  account  of  the  stringency  of  the  money  market,  and 
the  consequent  depression  of  railroad  building,  it  is  gratifying 
for  us  to  know  that  the  importance  of  this  connection  has  not 
been  forgotten  by  those  who  control  the  vast  interests  of  the 
Norfolk  and  Western.” 

“While  your  board  cannot  now  hope  that  the  road  will  be  in 
operation  in  time  for  the  World’s  Fair,  as  suggested  by  Mr. 
Kimball,  still  the  very  great  importance  of  this  connection 
should  not  for  a  moment  be  lost  sight  of.  As  stated,  it  is  im¬ 
possible  to  estimate  the  benefits  which  would  accrue  to  your 
road  from  this  connection.  The  shortest  and  most  direct  route 

i 

from  the  South  Atlantic  States  to  the  great  Northwest  means 
a  great  deal  for  your  enterprise,  and  it  is  not  necessary  here 
even  to  attempt  to  show  the  vast  benefits  to  be  derived  from 
it.  Your  board  proposes  continuing  to  press  for  this  connec¬ 
tion,  and  from  the  assurances  given  to  it  by  those  in  control, 
are  led  to  believe  that  they  too  realize  the  advantages  such  a 
connection  would  prove.” 

This  work  was  abandoned  when  the  N.  &  W.  bought  the 
Roanoke  and  Southern  from  Roanoke  to  Winston-Salem,  giving 
them  a  direct  connection  with  the  C.  F.  &  Y.  Y.  at  Walnut 
Cove.  Having  this  connection  the  next  step  to  get  our  East 
and  West  business  was  the  suggestion  that  Virginia  City  rates 
be  put  in  effect  to  Greensboro  and  Winston-Salem.  This  would 
not  do,  so  the  North  and  South  line  arranged  to  bluff  the 
N.  &  W.  off  by  allowing  the  N.  &  W.  to  put  soliciting  agents  in 
the  Carolina  territory.  Here  again  these  North  and  South 


52 


iines  blocked  the  progress  of  our  State  to  their  own  selfish 
gain. 

The  question  here  might  be  asked — “Could  the  C.  F.  &  Y.  V. 
be  made  to  pay  its  way?”  On  this  subject  Capt.  J.  W.  Fry, 
General  Manager  of  this  road  from  1890  to  1899,  during 
investigation  held  by  Corporation  Commission  in  Raleigh, 
North  Carolina,  the  27th  day  of  February,  1914,  stated: 

“Up  until  the  panic  of  1893,  the  road  took  care  of  its 
expenses  and  a  little  more  than  that,  and  interest  and  charges.” 

When  asked  if  this  line,  if  operated  as  an  independent  com¬ 
pany  in  its  entirety  under  present  day  conditions,  would  be 
salf-sustaining,  he  replied,  “I  would  say,  certainly,  yes.” 

The  foregoing  has  demonstrated  that  our  North  and  South 
carriers  are  willing  to  go  the  limit  to  destroy  this  East  and  West 
trunk  line  competition.  The  result  is  that  through  the  eastern 
cities  all  rail  lines  of  the  three  main  North  Carolina  carriers 
run  to  the  neck  of  the  bottle  at  the  Potomac  Yards,  Virginia. 
This  is  often  blocked.  The  other  routes  lead  to  Cincinnati. 
Our  industries  buy  and  sell  in  large  quantities  in  that  territory 
covered  by  the  states  of  Pennsylvania,  New  York,  New  Jersey, 
Ohio,  Indiana,  Illinois,  Michigan  and  Wisconsin,  with  a  popu-* 
lation  of  43,500,000,  while  the  ten  states  in  the  Southern  region 
have  a  population  of  20,000,000. 

Our  purpose  in  reciting  at  some  length  the  history  of  the 
railway  systems  in  North  Carolina  is  to  show: 

1st.  That  an  east  and  west  trunk  line  across  the  State  under 
one  management  has  always  been  recognized  as  essential  for 
an  adequate  system  of  transportation. 

2d.  That  such  contemplated  trunk  line  was  to  be  connected 
with  the  Middle  West  through  the  coal  fields  of  the  Virginias, 
Tennessee  and  Kentucky. 

3d.  That  in  every  instance  a  deep  water  terminal  for  this 
trunk  line  was  deemed  essential. 

4th.  That  the  harbor  at  the  mouth  of  the  Cape  Fear  River 
tidal  basin,  or  Southport,  was  in  all  cases  the  selected  terminal. 

5th.  That  the  only  apparent  exception  to  this  was  'the 


53 


C.  F.  &  Y.  Y.  Ry.,  which  was  prevented  from  reaching  South- 
port  by  financial  and  other  obstacles  over  which  the  builders 
had  no  control  and  which  forced  it  into  Wilmington,  and 
finally  removed  this  road  as  a  factor  in  building  up  the  State. 

6th.  That  the  interests  which  have  successfully  prevented  this 
State  from  securing  an  east  and  west  trunk  line  with  tide 
water  terminals  at  Southport  for  the  past  35  to  70  years  have 
based  their  opposition  upon  lessened  financial  returns,  due  to 
loss  of  the  long  haul  north  and  south,  and  that  this  situation 
remains  practically  unchanged. 

7th.  That  the  agricultural,  commercial  and  industrial  inter¬ 
ests,  or  more  generally  the  producers  and  consumers  of  North 
Carolina,  are  the  losers  and  are  paying  the  price. 

OUR  PRESENT  WATER  TRANSPORTATION 

The  only  service  is  weekly  sailings  from  New  York  to 
Wilmington  via  Clyde  Line.  With  these  regular  sailings 
why  do  we  not  have  through  rates  via  our  State  port  at 
Wilmington?  We  will  answer  this  by  quoting  part  of  a 
letter  from  Clyde  Line  Traffic  Manager  written  to  a  North 
Carolina  firm : 

“We  have  not  published  any  through  rates  to  points 
beyond  Wilmington  and  do  not  contemplate  doing  so — as 
a  matter  of  fact  we  have  had  no  through  or  joint  rates 
to  points  beyond  Wilmington  in  connection  with  the  rail 
lines  for  eight  or  nine  years. 

“These  rates  are  canceled  for  two  reasons;  one  that 
on  account  of  volume  of  tonnage  and  with  a  weekly  service, 
little  business  was  secured.  The  second  reason  was  because 
the  rail  lines  required  in  division  of  rates,  about  the  same 
revenue  as  accrued  to  them  at  Norfolk.” 

Within  the  last  year  we  found  that  the  Clyde  Line  did  not 
get  enough  business  from  one  of  their  ships  to  even  load  a 
package  car  as  far  west  as  Sanford.  Here  again  we  find 
that  our  North  and  South  lines  have  successfully  closed  our 


54 


only  port.  In  the  meantime,  through  cooperation  with  the 
New  York-Richmond  Steamship  Company,  a  new  concern, 
they  have  built  up  a  business  via  Richmond  to  justify  three 
sailings  per  week. 

There  are  published  through  rates  via  Norfolk,  while  via 
Wilmington  they  are  made  on  combination  of  locals  plus 
transfer  of  3c.  per  cwt.,  the  result  being: 

New  York  to  Greensboro  Class  Rates. 


Class  1  2  3  4  5  6 

Via  Wilmington _  179  147  123%  98  77%  59% 

Via  Norfolk  _  126  107  94%  76%  59%  51% 


Difference  favor  Norfolk  53  40  29  21%  18  8 

Therefore  a  carload  of  30,000  lbs.  of  second  class  matter 
moving  via  Wilmington  would  cost  $120.00  more  than  via 
Norfolk. 

Freight  Rates 

The  whole  rate  structure  of  the  United  States,  certainly 
that  East  of  the  Mississippi  River,  has  been  built  up  through 
the  development  of  one  waterway  by  the  State  of  New  York, 
to  wit:  the  Erie  Canal.  This  dates  back  ‘to  1724,  when  New 
York  determined  to  hold  the  traffic  resulting  from  the  fur  trade 
of  the  Middle  and  North  West.  The  construction  and  opening 
of  this  canal  brought  about  a  low  basis  of  freight  rates  through¬ 
out  of  the  eastern  and  northern  part  of  the  United  States 
and  its  influence  extended  as  far  west  as  the  Mississippi  Valley. 
It  had  a  direct  effect  upon  North  Carolina,  since  it  resulted 
in  the  creation  of  what  is  known  as  “The  Virginia  Cities” 
and  brought  about  the  discrimination  in  freight  rates  in  favor 
of  those  cities  as  compared  with  North  Carolina  cities  and 
towns.  After  the  construction  of  the  Erie  Canal  the  railroad 
lines  leading  from  Chicago  and  the  West  to  meet  the  compe¬ 
tition  thus  created  established  a  low  level  of  freight  rates  to  the 
port  of  New  York.  This  was  done  through  the  influence  of 
the  then  “Vanderbilt  Lines,”  now  the  New  York  Central  Lines. 
The  Pennsylvania  Railroad  met  the  low  level  of  freight  rates 


55 


established  to  the  port  of  New  York  by  establishing  the  same 
freight  rates  to  the  port  of  Philadelphia.  The  Baltimore  & 
Ohio  Railroad,  with  a  line  leading  from  the  coal  fields  and 
the  West  to  Baltimore,  met  the  competition  of  the  Pennsylvania 
Railroad  at  Philadelphia  by  establishing  the  same  rates  to 
Baltimore  from  the  West  as  were  in  effect  to  Philadelphia. 
The  Norfolk  &  Western  and  the  Chesapeake  &  Ohio  railroads, 
with  rail  lines  leading  from  the  West  and  through  the  coal 
fields  to  tide-water  Virginia,  met  the  competition  of  other 
rail  carriers  at  New  York,  Philadelphia  and  Baltimore  by 
establishing  the  same  level  of  freight  rates  as  obtained  at  those 
points  to  Norfolk,  Virginia.  Construing  the  “Long  and  short 
haul”  clause  the  Act  to  regulate  Commerce  literally,  (this 
clause  means  that  no  greater  compensation  shall  be  charged  for 
a  long  haul  by  railroad  than  for  a  short  haul  over  the  same  route 
in  the  same  direction)  the  Chesapeake  &  Ohio  Railroad  carried 
back  over  its  line  to  certain  interior  cities  the  low  level  of 
freight  rates  established  from  the  West  to  Norfolk,  i.e.  the 
Norfolk  rates,  and  this  action  brought  within  that  level  of  how 
freight  rates  from  the  West  the  cities  of  Roanoke,  on  the  Nor¬ 
folk  &  Western,  Lynchburg,  Richmond  and  smaller  towns  and 
cities  in  the  State  of  Virginia.  This  created  what  is  known  as 
“The  Virginia  Cities,”  which  enjoy  a  low  level  of  freight 
rates,  but  with  no  compensating  advantage  in  freight  rates  to 
the  territory  immediately  to  the  south,  and  from  this  discrimi¬ 
natory  situation  North  Carolina  has  suffered  for  years.  At 
that  time  the  railroad  lines  penetrating  the  State  of  North 
Carolina  were  made  up  of  small  units  in  weak  financial  condi¬ 
tion.  These  small  units  were  gradually  consolidated  into  trunk 
line  systems,  traversing  the  State  north  and  south,  and  these  new 
trunk  lines  thus  made  up  sought  the  nearest  ocean  port  with 
facilities  already  established,  where  terminal  costs  were  low 
and  the  cost  of  entrance  minimized.  This  forced  North 
Carolina  traffic  to  the  port  of  Norfolk.  The  State  felt  keenly 
this  freight  rate  discrimination  brought  about  by  the  conditions 


56 


recited,  and  this  burden  of  discrimination  has  rapidly  increased 
as  the  State  developed. 

When  we  request  relief  from  excessive,  unjust  freight  rates 
that  will  enable  our  industries,  jobbers  and  farmers  to  com¬ 
pete  with  other  sections  we  find  that,  as  we  have  no  east  and 
west  lines,  except  the  circuitous  ones  owned  or  controlled  by  the 
North  and  South  lines,  we  are  treated  with  relation  to  Virginia 
cities  on  the  one  hand  and  Atlanta  on  the  other — and  why  not  ? — 
our  own  ports  have  been  bottled  up  and  no  through  rates  apply, 
so  the  business  of  interior  North  Carolina  points,  via 
rail  and  water  to  the  eastern  port  cities  has  to  move  through 
their  favored  port  of  Norfolk  so  the  north  and  south  lines 
can  get  their  long  haul  to  this  territory  via  all  rail — our  only 
outlet  again  being  ineffective  gives  them  their  long  hauls  north 
and  south. 

Conditions  became  so  bad  that  Chambers  of  Commerce, 
aided  by  the  Corporation  Commission  and  various  other  inter¬ 
ests  over  the  State  of  North  Carolina,  filed  cases  with  the  Inter¬ 
state  Commerce  Commission  which  are  numbered  10,500  and 
10,515.  We  won  these  cases  and  the  new  rates,  as  prescribed 
by  the  Commission,  which  in  no  manner  remedies  the  evil,  but 
simply  modifies  it,  became  effective  January  15,  1922 — the 
commodity  rates  which  should  have  been  put  in  shortly  after 
the  class  rates  have  been  corrected  only  in  part  to  date,  and 
the  dillydallying  procedure  of  the  Southern  Lines  or  Carolina 
Committee  is  now  before  the  Commission  with  request  that  they 
be  made  to  act  promptly. 

The  next  fight  is  now  before  the  Commission  for  decision. 
It  has  North  Carolina  mixed  up  with  the  entire  Southeast. 
This  case  is  what  is  known  as  the  Southern  Class  Rate  Investi¬ 
gation,  docket  13,494.  All  rates  between  North  Carolina  and 
the  West  are  involved.  This  case  proposes  to  increase  freight 
rates  from  western  territory;  that  is,  practically  all  territory 
in  the  United  States  west  of  the  Buffalo-Pittsburg  line,  north 
of  the  Ohio  River  and  west  of  the  Mississippi  River,  to  North 
Carolina  points — using  first-class  from  Cincinnati  as  illustra- 


57 


tive — thirty-nine  per  cent  over  rates  at  present  in  effect,  Uur 
freight  rates  from  this  territory  have  steadily  increased  since 
1914  so  that  with  the  proposed  increase  it  will  mean,  using  first- 
class  as  illustrative,  that  our  freight  rates  from  the  West  will 
have  been  increased  since  1914  128%  over  the  freight  rates  pre¬ 
vailing  prior  to  that  time.  In  other  words,  our  first-class  freight 
rate  from  Cincinnati,  Ohio,  to  zone  one  points  in  North  Caro¬ 
lina,  such  as  Raleigh,  Greensboro,  Winston-Salem,  etc.,  prior 
to  1914  was  82  cents  per  hundred  pounds.  With  the  increase 
now  proposed  and  the  increases  heretofore  made,  this  first-class 
rate  from  Cincinnati  to  the  points  enumerated  above  will  jump 
to  $1.87  per  hundred  pounds.  Moreover,  we  have  no  assurance 
that  further  increases  will  not  be  demanded.  In  this  same 
docket  number  13,494  no  corresponding  increase  in  freight 
rates  is  proposed  for  “The  Virginia  Cities.” 

It  was  testified  in  the  case  referred  to,  and  is  of  record  in 
that  case,  that  the  value  per  annum  of  the  manufactured 
products  made  in  the  cities  of  Winston-Salem,  Durham,  Char¬ 
lotte  and  Greensboro  exceeded  by  the  sum  of  one  hundred 
million  dollars  the  total  value  of  manufactured  products  of 
the  cities  of  Lynchburg,  Richmond,  Norfolk  and  Roanoke  in 
the  State  of  Virginia,  using  1920  as  a  basis.  The  great  indus¬ 
trial,  agricultural  and  commercial  life  of  North  Carolina  has 
suffered  for  years  in  the  matter  of  discriminatory  freight 
rates.  True  it  has  prospered,  in  a  measure,  in  spite  of  such 
discriminations,  but  this  evil  of  discrimination  is  growing  and 
will  continue  to  grow  unless  and  until  every  pretext  for  its 
continuance  has  been  permanently  removed.  If  left  to  the 
railroads  this  will  never  be  corrected  unless  North  Carolina 
takes  action  by  proper  remedial  measures,  the  existing  handicap 
on  all  business  in  the  State  will  be  augmented. 

The  Coal  Situation 

The  Atlantic  Coast  Line  Railroad  in  connection  with  the 
Louisville  and  Nashville  Railroad,  which  it  controls,  has  recently 
acquired  by  lease  the  Carolina,  Clinchfield  and  Ohio  Railroad, 


58 


leading  from  the  coal  fields  of  Virginia  and  West  Virginia 
and  Ohio  River  to  Spartanburg,  South  Carolina,  where  it 
connects  with  the  Charleston  &  Western  Carolina  Railroad. 
Also  note  the  control  by  the  Atlantic  Coast  Line  Railroad 
leading  from  Spartanburg  to  Charleston  and  Port  Royal, 
South  Carolina.  An  investigation  of  the  map  will  demonstrate 
that  the  Atlantic  Coast  Line  Railroad  intends  to  establish 
port  coal  rates  from  the  coal  fields  through  Spartanburg  to 
Charleston  and  Port  Royal  (they  state  in  their  application  to 
the  I.  C.  C.  that  they  intend  to  operate  it  in  connection  with 
the  Charleston  &  Western  Carolina  Railroad),  and  likewise 
rates  from  the  west  to  said  ports.  In  this  connection  you  will 
recall  that  the  City  of  Charleston  recently  acquired  port  termi¬ 
nal  facilities  from  the  United  States  Government  and  from  the 
railroads  and  we  are  advised  that  she  is  feverishly  at  work 
extending  and  improving  these  terminal  facilities. 

Coal  rates  will  be  established  to  Charleston,  S.  C.,  upon  a  com¬ 
petitive  basis  with  coal  rates  to  Norfolk  from  the  coal  fields 
served  by  the  Norfolk  &  Western,  the  Chesapeake  &  Ohio  and 
the  Virginian  Railroads.  The  result  will  be  to  squeeze  the  North 
Carolina  consumer  upon  a  mountain  of  high  freight  rates  from 
which  he  can  look  into  the  valley  of  low  freight  rates  enjoyed  by 
his  Virginia  neighbors  on  the  north  and  his  South  Carolina 
neighbors  on  the  south,  and  smile.  Under  existing  condition  he 
is  impotent  and  must  accept  his  financial  loss  due  to  this  dis¬ 
criminatory  situation.  It  has  been  said  in  the  early  agitation 
of  good  roads  that  the  United  States  is  the  only  country  rich 
enough  to  afford  poor  roads.  Is  the  State  of  North  Carolina 
rich  enough  to  afford  this  freight  rate  discrimination?  Can 
North  Carolina  afford  to  lose  new  manufacturing  concerns 
desiring  to  locate  in  the  State,  or  those  already  established, 
together  with  the  capital  en^loyed  and  the  capable  business 
men  operating  them,  through  this  freight  rate  discrimination? 

The  freight  rate  is  the  biggest  factor  in  the  cost  of  coal. 
At  present  the  rate  on  coal  from  the  coal  fields  to  Norfolk 
is  $2.52  per  ton,  and  that  rate  is  voluntarily  established  under 


59 


the  Long  and  Short  Haul  clause — we  find  the  same  rate 
at  Roanoke,  Virginia,  $2.52  per  ton,  248  miles  from  Norfolk 
and  tide  water.  This  low  level  of  coal  rates  is  reflected  through¬ 
out  the  State  of  Virginia.  With  the  establishment  of  a  coal 
port  at  Charleston  this  same  situation  will  necessarily  result  in 
South  Carolina.  Will  the  construction  of  a  coaling  station 
and  harbor  at  the  mouth  of  the  Cape  Fear  River,  together 
with  facilities  for  handling  export  and  bunker  coal,  in  con¬ 
nection  with  our  existing  railroad  connections  from  the  coal 
fields  to  tide  water,  cause  the  carrier  to  voluntarily  put  into 
effect  port  coal  rates  to  our  port?  We  think  it  would.  If  not, 
can  they  be  forced  to  do  so  by  the  Interstate  Commerce  Com¬ 
mission  under  the  act  to  regulate  commerce?  If  so,  such  port 
rates  when  carried  back  under  the  Long  and  Short  Haul 
clause  of  the  Act  to  regulate  Commerce  would  give  us  low 
coal  rates  throughout  the  State  of  North  Carolina;  certainly 
as  far  back  from  the  port  as  Winston-Salem  on  the  one  hand 
and  Charlotte  on  the  other.  When  it  is  considered  that  the 
present  rates  on  coal  from  the  coal  fields  to  North  Carolina 
points  range  from  $3.25  to  $3.55  per  ton,  it  is  not  difficult 
to  reason  that  the  construction  of  a  modern  coaling  station 
with  proper  facilities  for  handling  export  coal  at  deep  tide 
water,  will  inure  to  the  benefit  of  the  entire  State  and  all  its 
people. 

As  to  the  99  year  lease  by  the  Atlantic  Coast  Line,  of  the 
C.  C.  &  O.  Ry.,  awaiting  approval  and  confirmation  by  the 
Interstate  Commerce  Commission,  it  is  noted  from  the  press 
that  the  Seaboard  Air  Line  has  filed  a  protest  against  it, 
basing  their  claim  upon  prior  rights  obtained  years  ago  when 
the  C.  C.  &  O.  Railway  was  under  construction.  We  are  unable 
to  give  you  the  facts  further  than  that  according  to  our  informa¬ 
tion  there  was  an  agreement  between  them  through  which  from 
Bostic  the  Seaboard  Air  Line  was  to  reach  the  harbor  at  the 
mouth  of  the  Cape  Fear  River,  branching  off  from  their 
present  line  at  East  Arcadia  and  running  from  there  direct 
to  Southport.  We  also  note  from  the  press  that  certain  inter- 


60 


ests  in  the  State  of  Georgia  has  also  filed  a  protest  against  the 
Atlantic  Coast  Line  lease,  and  we  are  convinced  that  the  best 
interests  of  the  State  of  North  Carolina,  agricultural,  manu¬ 
facturing  and  industrial,  imperatively  demand  active  and  per¬ 
sistent  protest  against  the  approval  of  this  lease. 

What  is  North  Carolina’s  Remedy  for  This  Situation? 

As  to  the  railway  situation  there  is  but  one  answer :  A  trunk 
line  railway  traversing  the  State  from  west  to  east,  from 
Cincinnati  and  the  mid  west  through  the  coal  fields  to  an 
ocean  outlet  in  the  State  and  independent  of  our  north  and 
south  trunk  lines.  This  can  he  accomplished  in  the  following 

ways : 

«/ 

1.  The  construction  of  an  entirely  new  line. 

2.  Establishing  suitable  connections  with  some  trunk  line 
already  in  existence  in  the  State. 

3.  The  purchase  of  some  line  already  built  with  suitable 
connections. 

4.  The  establishment  of  a  tide  water  terminal  with  suitable 
connections.  Of  these  the  4th  is  at  this  time  believed  to 
be  the  most  feasible  and  practicable. 

1.  As  to  the  construction  of  a  new  line,  whether  by  the  State 
or  a  private  corporation,  if  it  becomes,  as  it  certainly  will,  an 
interstate  carrier,  then  authority  must  be  obtained  from  the 
Interstate  Commerce  Commission,  which  will  be  difficult  under 
existing  conditions  and  possibly  denied  in  case  it  parallels 
another  road. 

2.  The  only  east  and  west  trunk  line  through  the  coal 
fields  now  in  the  State  is  the  Norfolk  &  Western,  with  termi¬ 
nals  at  Winston-Salem  and  at  Durham.  Some  of  our  cities, 
viz:  Wilmington,  Fayetteville,  Greensboro  and  Mt.  Airy  sup¬ 
ported  by  our  Corporation  Commission,  have  a  case  before 
the  Interstate  Commerce  Commission  to  have  the  illegal  sale 
and  dismemberment  of  the  C.  E.  &  Y.  Y.  set  aside  and  this 
road  allocated  to  the  N.  &  W.,  or  some  other  trunk  line.  The 
State  is  also  bringing  suit  and  the  case  is  set  for  this  Septem¬ 
ber  term  on  a  demurrer  by  the  carriers.  It  is  believed  practi- 


61 


cable  and  probably  cheaper  for  the  Norfolk  &  Western  to 
build  an  entirely  new  line  to  the  coast  rather  than  to  take 
over  the  C.  F.  &  Y.  Y.  in  its  present  physical  condition. 
This  may  be  modified,  however,  by  the  value  of  terminals.  Those 
at  Greensboro  are  very  valuable.  It  is  well  known  and  the  blue 
print  we  present  confirms  what  has  been  said  by  the  Presidents 
of  the  N.  &  W.  and  of  the  C.  F.  &  Y.  Y.  as  to  the  contemplated 
physical  connections  more  than  30  years  ago  of  these  two  roads. 

3.  The  purchase  of  existing  roads :  This  can  be  accom¬ 
plished  probably  quite  readily  by  the  purchase  of  the  C.  C.  &  O. 
and  the  W.  B.  &  S.,  together  with  that  portion  of  the  Seaboard 
between  Navassa  and  Bostic.  This  latter  purchase  may  be 
avoided  by  a  suitable  and  satisfactory  arrangement  with  the 
Seaboard. 

A  Tide  Water  Terminal 

An  east  and  west  trunk  line  will  not  alone  suffice  to  obtain 
cheaper  transportation.  It  must  be  linked  up  with  shipping 
at  tide  water  through  a  terminal,  with  modern  terminal  facil¬ 
ities  to  produce  the  desired  result.  We  have  already  pointed 
out  that  the  State  of  Louisiana  has  developed  harbor  facilities 
in  which  she  will  have  an  investment  of  one  hundred  million 
dollars  of  municipally  owned  terminals,  wharves,  warehouses, 
docks  and  industrial  canals,  and  Baltimore  has  proposed  to 
match  this  development  by  adding  to  the  fifty  million  dollars 
voted  a  few  years  ago  for  port  facilities,  including  docks  and 
warehouses,  upon  which  construction  is  now  under  way,  and 
which  will  eventually  represent  an  outlay  of  one  hundred 
million  dollars  before  completion.  We  have  referred  to  the 
expenditures  of  California  at  San  Francisco,  and  also  that  of 
Alabama  at  Mobile,  all  of  which  clearly  indicate  that  if  we  are 
to  develop  an  ocean  outlet  on  our  deep  water  in  the  State  we 
must  be  prepared  to  accept  the  modern  policy  of  action  by  the 
State  and  be  prepared  to  meet  this  competition. 

Our  contention  is,  in  fact  we  are  convinced,  that  the  estab¬ 
lishment  of  a  port  with  adequate  terminal  facilities  will 
certainly  attract  ocean  traffic  in  large  volume,  both  inland  and 


62 


outbound,  and  that  this  traffic  will  result  in  causing  our  present 
railroad  lines  to  meet  this  situation  and  adequately  serve  the 
State.  This  traffic  is  the  life-blood  of  railroads. 

Traffic  Possibilities  Incident  to  a  Tide  Water  Terminal 

In  order  to  warrant  the  construction  of  an  ocean  terminal, 
we  recognize  that  there  must  be  potential  traffic  to  pass  through 
it  in  both  directions.  We  assume  that  with  such  termi¬ 
nal  established  at  the  mouth  of  the  Cape  Fear  River,  there 
will  be  operated  in  connection  with  the  port,  terminal 
facilities  for  a  modern  cotton  warehouse  of  sufficient  capacity, 
equipped  with  compress,  and  with  modern  fire  protection  that 
will  make  for  the  lowest  possible  insurance  rates,  together  with 
reasonable  storage  and  handling  charges.  Such  facilities  would 
attract  to  this  port  its  share  of  the  export,  including  the  coast¬ 
wise  movement  of  cotton  from  all  territory  in  the  cotton  belt. 

Of  every  100  bales  of  commercial  cotton  produced  in  the 
world  in  1920,  68  were  produced  in  the  United  States;  of  the 
68  more  than  37  were  grown  in  Texas,  South  Carolina  and 
Georgia.  If  Arkansas,  and  Oklahoma  are  added,  more  than 
one-half  of  the  world’s  commercial  crop  is  accounted  for.  This 
crop  was  disposed  of  as  follows : 

1st.  Export  to  Great  Britain,  Continental  Europe,  Japan 
and  other  countries,  47  per  cent. 

2d.  Newr  England  mills,  12  per  cent. 

3d.  Southern  mills,  23  per  cent,  and  mills  in  other  states 
about  4 i/2  per  cent.  The  balance  is  stock  on  hand  in  mills, 
warehouses,  compresses,  etc.  The  actual  stock  on  hand  July 
31st,  1921  was  six  million  five  hundred  and  thirty-four  thousand 
bales.  Prior  to  1914  two  bales  out  of  three  were  exported. 
In  1880  New  England  consumed  one  bale  in  five;  today  she 
takes  one  in  eight.  Forty  years  ago  the  southern  mills  were 
spinning  one  bale  in  thirty;  today  about  one  in  three. 

Cotton  seed  and  its  products,  together  with  cotton  seed  meal, 
has  been  moving  in  large  quantities  from  the  South  and  this 
traffic  would  be  within  reach  through  our  rail  connections  for 
movement  through  our  port  terminal  in  connection  with  our 


63 


direct  rail  connections  via  Southern  Railway,  Atlantic  Coast 
Line  and  Seaboard  Air  Line  Ry.,  which  reaches  out  and  covers 
the  entire  southern  territory. 

Grain  and  grain  products  from  the  west  and  middle  west 
constitute  the  basic  cargo  for  all  steamships  plying  between 
the  United  States  and  European  countries.  Of  these  there 
was  exported  from  all  ports  in  the  United  States  in  the  year 
1920,  323,851,345  bushels,  equal  in  weight  to  9,264,458  short 
tons.  The  total  short  tons  of  all  grain  exported  from  all  the 
ports  of  the  United  States,  including  bread  stuff,  wheat,  flour, 
corn  meal,  rye  flour,  barley  flour,  oat  meal  and  rice  make  a 
total  of  24,099,113  short  tons  exported  during  1920.  A  port 
terminal  would  be  incomplete  without  a  grain  elevator  and 
proper  storage  capacity.  All  the  grain  producing  states  are 
accessible  to  North  Carolina  through  direct  railroad  connec¬ 
tions. 

The  export  of  automobiles  and  accessories  from  the  middle 
west  has  developed  in  large  proportions  and  is  still  rapidly 
growing  in  volume,  especially  in  the  Detroit  and  middle 
west  district.  There  are  now  about  10,300,000  automobiles 
registered  in  the  United  States,  an  increase  in  the  past  10  years 
of  1200  per  cent.  As  the  product  is  increasing,  then  export 
must  be  and  is  being  developed,  even  among  the  Oriental 
countries,  including  China  and  Japan.  With  suitable  port  termi¬ 
nals  we  will  open  a  direct  and  economical  route  for  the  develop¬ 
ment  of  this  high  freight  rate  producing  traffic.  Under  acces¬ 
sories  we  include  automobile  tires  for  export  from  such  centers 
as  Akron,  Ohio,  the  largest  producing  locality  in  this  country, 
and,  as  well,  plants  in  our  own  State,  such  as  Salisbury,  Win¬ 
ston-Salem  and  Charlotte. 

With  regard  to  petroleum  and  its  by-products,  we  find  that  the 
production  of  gasoline  in  1921  was  5,153,549,318  gallons.  The 
home  consumption  was  4,516,129,076  gallons,  so  that  our  export 
in  this  same  year  was  524,279,031  gallons.  In  1921  our  export 
of  kerosene  was  704,542,145  gallons. 

Fuel  oil  is  consumed  in  large  quantities  by  all  oil  burning 


64 


vessels  and  by  manufacturing  plants  in  all  parts  of  the  United 
States.  It  competes  with  coal  as  a  source  of  both  commercial 
and  domestic  heat  and  power.  It  is  true  that  the  shippers 
of  the  petroleum  products  furnish  their  own  cars,  of  which 
they  had  in  this  country  in  the  year  1921,  114,829. 

But  the  sources  of  crude  oil  are  now,  generally  speaking, 
outside  of  the  areas  of  greatest  consumption  of  both  the  oil 
and  its  products,  which  require  the  location  of  refineries  at 
considerable  distance  from  the  source  of  supply.  With  our 
direct  rail  connection  with  the  middle  west  and  with  Pennsyl¬ 
vania,  a  properly  equipped  port  terminal  would  make  this 
class  of  traffic  accessible  for  movement  through  a  North  Caro¬ 
lina  port. 

With  an  ocean  port,  with  modern  and  adequate  facilities 
for  handling  export  and  bunker  coal,  when  such  facilities 
are  made  known  to  the  shipping  public,  there  can  be  no  good 
reason  advanced  why  this  class  of  traffic  would  not  move  in 
a  large  volume  through  such  port  terminal  properly  and  newly 
established,  as  against  the  older  ports  on  the  South  Atlantic, 
where  congestion  now  exists  and  is  constantly  growing.  From 
the  statistics  of  1918,  the  latest  we  have  available,  the  largest 
amount  of  coal  shipped  to  tide  water  was  from  the  West  Vir¬ 
ginia  coal  fields,  or  what  is  known  as  the  New  Biver  fields,  which 
amounted  to  9,286,536  net  tons.  The  total  amount  shipped 
from  the  West  Virginia  coal  fields  to  the  tide  water  amounted 
to  20,883,250  net  tons.  According  to  the  best  information  obtain¬ 
able,  bituminous  coal  exported  from  the  United  States  in  1920 
was  180%  greater  than  in  the  year  1913.  It  has  increased 
materially  since  that  time.  It  is  the  view  of  experts  that  the 
continued  increase  in  movement  of  this  traffic  is  one  of  the 
most  encouraging  developments  in  our  country’s  drive  for  a 
leading  place  for  the  commerce  of  the  world.  Our  close  prox¬ 
imity  and  direct  connection  by  rail,  the  shortest  rail  distance 
by  100  miles  to  the  coal  fields,  ought  to  assure  our  port  of  our 
share  of  this  important  and  growing  traffic. 

Turning  now  from  ocean  to  rail  traffic:  The  movement  of 


65 


commodities  by  water  between  the  Atlantic  and  Pacific  coasts 
through  the  Panama  Canal  has  increased  rapidly  in  the  past 
two  years,  noticeably  in  1921.  More  boat  lines  have  been 
established  and  the  lines  already  in  the  trade  have  increased 
their  shipping,  and  an  increased  volume  of  cargo  is  offered. 

That  this  ocean  traffic  through  the  Panama  Canal  is  still 
increasing,  we  invite  your  attention  to  the  following  tables 
showing  the  number  of  vessels  and  tolls  collected  for  six  months 
period,  October  to  March  in  1922  and  1923  as  compared  with 
the  same  period  in  1921  and  1922 : 

Number  of  Vessels  Tolls  Collected 


Month  1922-23  1921-22  1922-23  1921-22 

October _  294  255  $1,255,508.00  $1,047,935.62 

November _  294  222  1,264,436.54  923.018.70 

December _  304  239  1,312,570.12  1.003,598,27 

January  _  352  210  1,505,285.53  847.767.55 

February _  330  212  1,423,972.51  866,266.18 

March  _  415  234  1,827,733.00  956,726.76 


Total _  1,989  1,372  $8,589,505.70  $5,645,343.08 


In  this  same  connection  we  invite  your  attention  to  the  fol¬ 
lowing  statement  of  foreign  trade  from  Southeastern  ports 
giving  a  comparison  of  exports  and  imports  from  the  southeast 
in  1920  and  1910: 

Foreign  Trade  From  Southeastern  Ports 


Total  exports  from  Southeast,  1920 -  $1,153,458,000 

Total  exports  from  Southeast,  1910 -  294,172,500 


Increase _  $  859,285,500 

or  approx.  300% 

Total  imports  from  Southeast,  1920 -  $369,574,400 

Total  imports  from  Southeast,  1910 -  76,018,400 


Increase  _  $293,456,000 

or  approx.  385% 


The  timber  shipment  from  the  Pacific  northwest  to  the  Atlan¬ 
tic  coast  during  the  first  quarter  of  the  calendar  year  1921 
was  42,495,579  feet.  Timber  is  now  moving  from  the  Pacific 


—5 


66 


coast  to  Atlantic  ports  at  a  monthly  average  of  approximately 
34,000,000  feet.  This  is  equivalent  to  1,360  carloads  of  revenue 
freight  per  month.  Shipments  from  the  Atlantic  to  the  Pacific 
ports  have  increased  in  like  manner.  The  coast-wise  trade 
through  the  Panama  Canal  in  the  fiscal  year  ending  1921 
equaled  1,430,977  net  tons. 

In  connection  with  the  timber,  less  than  5%  of  the  virgin 
forests  of  the  Hew  England  States  remains,  and  Hew  York,  once 
the  leading  state  in  timber  production,  now  manufactures  only 
50  board  feet  per  capita  yearly,  although  the  requirements  due 
to  increased  population  are  300  board  feet  per  capita. 

The  virgin  pine  forests  of  the  South  Atlantic  and  Gulf  States 
have  been  reduced  from  about  six  hundred  and  fifty  billion 
feet  to  about  one  hundred  and  three  billion  feet.  It  is  estimated 
by  the  Forest  Service  that  within  15  years  these  states  will 
become  importing  regions,  obtaining  a  portion  of  their  require¬ 
ments  on  the  long  haul  and  higher  freight  rates  from  the 
Pacific  coast. 

The  average  annual  production  of  shingles  in  the  United 
States  is  between  six  and  seven  billion.  The  greatest  production 
of  these  is  on  the  Horth  Pacific  coast,  west  of  the  Cascade 
mountains,  in  Washington  and  Oregon  where  practically  all 
of  the  cedar  shingles  are  manufactured.  There  is  also  a  very 
considerable  output  of  cypress  shingles  in  Louisiana,  and  like¬ 
wise  of  the  substitute  patent  roofings,  such  as  asbestos,  asphalt 
shingles,  etc.,  in  other  sections.  In  the  South,  and  in  Horth  Caro¬ 
lina,  there  is  a  very  considerable  demand  for  these  shingles,  and 
the  red  cedar  must  come  from  the  manufacturing  centers.  At  the 
present  time  this  large  movement  of  shingles,  dried  fruits,  sal¬ 
mon  and  canned  goods  generally  for  Horth  Carolina  come  by 
water  from  the  Pacific  coast  to  the  eastern  seaboard,  and  are 
generally  distributed  from  the  port  of  Horfolk  for  this  State — 
no  doubt  our  wholesale  jobbers  and  the  dealers  at  the  coast  ports, 
including  Wilmington,  have  joined  in  the  purchase  of  cargo  lots 
of  canned  goods  from  the  Pacific  coast  through  Horfolk,  for  dis¬ 
tribution  in  Horth  Carolina.  Why  should  these  pass  Hatteras 


67 


and  sail  the  extra  distance  to  Norfolk?  They  will  not  if  we  estab¬ 
lish  a  port  with  modern  terminal  facilities  in  our  harbor. 

The  principal  items  moving  from  the  Pacific  to  the  Atlantic 
ports  are  wheat,  food  products,  cold  storage,  lumber,  flour,  cop¬ 
per,  canned  milk,  fruits  and  fish;  and  from  the  Atlantic  to  the 
Pacific  ports  iron,  steel,  merchandise  and  canned  goods.  The 
rates  of  carriers  by  water  lines  to  the  Pacific  coast  are  approx¬ 
imately  three-fifths  of  the  existing  rates  on  rail. 

We  now  invite  your  attention  to  the  heavy  import  movement 
of  crude  rubber  from  South  America  to  the  United  States,  and 
also  from  the  large  territory  in  the  Dutch  East  Indies.  A 
glance  at  the  map  we  have  prepared  will  show  the  shortest  route 
from  the  rubber  fields  of  South  America  to  the  United  States 
and  to  the  plants  using  rubber  in  North  Carolina  and  in  the 
mid  west,  such  as  Akron.  You  will  also  note  the  area  of  great 
rubber  production  by  the  United  States  Rubber  Company, 
which  is  110,000  acres,  with  5,000,000  rubber  plants  in  the 
Island  of  Sumatra  and  on  the  Malayan  Peninsula.  The  great 
field  of  rubber  production,  as  you  will  note  from  the  map,  in 
addition  to  Sumatra  and  the  Malayan  Peninsula,  are  the  Islands 
of  Ceylon,  Java,  Borneo  and  the  Celebes.  Our  information 
is  that  the  great  bulk  of  the  rubber  coming  from  the  East 
Indies  up  to  the  World  War  came  via  Liverpool  and  thence 
to  New  York.  During  the  war  this  was  forced  to  seek  a  direct 
route  to  the  United  States  via  the  Panama  Canal. 

From  the  traffic  possibilities  and  other  important  and  far 
reaching  factors  recited  herein,  it  is  evident  that  the  construc¬ 
tion  of  a  modern  terminal,  with  ample  harbor  depth  for  any 
size  of  ships,  with  reasonable  charges  and  other  regulations 
under  public  control,  together  writh  direct  rail  connections, 
as  we  now  have,  with  the  great  producing  sections  of  the  West 
and  Middle  West,  should  result  in  a  financially  successful  enter¬ 
prise  and  give  to  North  Carolina  an  equality  of  freight  rates 
with  “The  Virginia  Cities”  and  other  existing  and  prospective 
favored  freight  rate  zones.  It  should  bring  about  transporta¬ 
tion  conditions  in  North  Carolina  in  the  same  way  and  to  the 


6S 


same  extent  that  favorable  transportation  conditions  have  been 
built  up  in  other  states  north  and  south  of  us.  It  should 
attract  tonnage  in  large  volume.  It  should  open  up  an  outlet 
in  our  own  State  for  our  growing  manufactured  products.  In 
1919,  the  largest  available  data  from  the  United  States  Census 
report  on  manufactures,  the  value  of  manufactured  products 
made  in  North  Carolina  for  that  year  was  $1,347,000,000  in 
round  figures,  and  the  output  of  our  manufacturing  plants  is 
not  only  rapidly  increasing,  but  moves  to  all  parts  of  the  world. 
That  business  in  unlimited  amounts  for  this  port  by  inland  and 
ocean  traffic  exists  and  is  obtainable  has  been  clearly  indicated 
to  you.  Shall  we  remain  passive  and  asleep  while  our  neighbors 
to  the  north  and  south  are  lending  their  credit  in  millions  of 
dollars  to  secure  this  traffic,  or  shall  we  awake,  recognize  the 
situation  as  it  is,  lend  the  credit  of  our  State  and  thereby  not 
on!  '  secure  our  full  share  of  the  business,  but  likewise  cure  the 
evils  of  which  we  complain  ? 

Coaling  and  Oil  Station  at  Southport 

It  must  be  evident  that  the  first  step  to  accomplish  this  will 
be  a  coaling  and  oil  station  and  we  do  not  hesitate  to  em¬ 
phatically  assert  without  fear  of  contradiction  that  the  harbor 
at  the  mouth  of  the  Cape  Fear  River,  or  Southport,  is  the 
logical,  practical  and  only  place  in  this  State  for  the  location  of 
rai  ocean  port  with  terminals  for  a  coaling  and  oil  station. 
This  location  for  such  station  is  as  definitely  fixed  by  nature 
as  is  the  great  tidal  basin  as  the  only  ocean  terminal.  The 
harbor  and  the  only  harbor  that  will  accommodate  ships  of 
any  draft  desiring  to  enter  for  coal  or  oil,  or  any  other  purpose, 
is  at  Southport.  It  has  cost  nothing  to  maintain  the  necessary 
depth  of  water  in  the  harbor  itself  since  the  river  current  main¬ 
tains  this  without  cost. 

Moreover,  it  is  the  only  location  in  this  tidal  basin  into 
which  vessels  will  enter  for  coal,  except  of  course  those  actually 
bound  to  Wilmington.  The  evidence  shows  that  for  forty- 
five  years  passing  vessels  have  inquired  and  still  inquire  whether 


69 


they  can  secure  coal  at  Southport,  and  when  informed  that 
they  cannot  but  that  they  can  get  it  in  Wilmington,  do  not 
put  in  for  that  port  but  keep  on  their  course.  In  the  earlier 
days  as  many  as  eighteen  vessels  in  one  day  made  this  inquiry 
of  the  light  ship  at  the  point  of  Frying  Pan  Shoals,  and  they 
continue  to  inquire  but  quite  naturally  not  so  many  do  so. 

It  is  manifestly  unreasonable  to  expect  a  vessel  to  spend  a 
minimum  of  forty-eight  hours  off  of  its  course  in  order  to  take 
on  coal  when  with  suitable  terminal  facilities  at  Southport  they 
can  leave  their  course,  take  on  coal  or  oil  and  get  back  on 
their  course  within  twelve  hours.  Pilots  will  bring  them  into 
and  out  of  Southport  at  any  hour  of  the  day  or  night.  They 
will  not  take  them  up  the  Cape  Fear  or  return  at  night,  espe¬ 
cially  if  large  vessels. 

We  Avish  now  to  invite  your  attention  to  the  official  reports 
of  certain  district  engineers  of  the  Wilmington  district  which 
confirm  our  statements,  with  a  comparison  as  between  South- 
port  and  other  harbors  on  the  Atlantic  coast.  Colonel  Earl 
I.  Brown,  as  District  Engineer  of  the  Wilmington  District, 
in  an  official  report  in  1909  said : 

“The  location  at  Southport  at  the  mouth  of  the  Cape 
Fear  River  is  especially  adapted  for  a  coaling  station,  since 
both  foreign  and  coast-wise  shipping  would  find  it  advanta¬ 
geous  to  coal  at  Southport  in  preference  to  Savannah, 
Charleston,  or  Newport  News,  as  the  distance  from  the  line 
of  ocean  travel  to  Southport  is  shorter  than  to  any  of  the 
other  ports  named.  The  dangers  of  Hatteras  would  also  be 
avoided.  .  .  .  Such  a  coaling  station  at  Southport 

would  be  situated  nearer  the  route  of  steamers  for  all  ports 
north  of  Cape  Hatteras  to  the  Panama  Canal  or  to  Gulf 
ports  than  Charleston,  Savannah,  or  Jacksonville,  having 
the  advantage  over  Charleston,  the  next  nearest  port,  of  over 
60  miles.” 

In  1917  Major  A.  E.  Waldron,  U.  S.  District  Engineer  at 
Wilmington  says: 


70 


“The  location  of  Southport  at  the  mouth  of  the  river  is 
especially  adapted  for  a  coaling  station,  the  distance  from 
the  line  of  ocean  travel  to  Southport  being  short.  Vessels 
coaling  at  Southport  would  also  avoid  risking  the  dangers 
of  Cape  Hatteras.” 

We  clip  the  following  from  the  Wilmington  Messenger  of 
April  2d,  1905. 

Favor  Southport.  Advantages  of  Southport  for  a  Coaling 
Station.  Letter  to  Col.  F.  H.  Fries 
Wilmington  Will  Aid  Her  Sister  Port  in  Getting  the 

Railroad. 

Mr.  J.  Allen  Taylor,  President  of  Wilmington  Chamber 
of  Commerce,  gives  few  reasons  why  Southport  should  be 
selected  for  a  coaling  station — depth  of  30  feet  could  be 
obtained  for  $150,000  against  $2,250,000  for  same  depth 
at  Charleston. 

Colonel  F.  H.  Fries,  of  Winston-Salem,  is  actively  inter¬ 
ested  in  having  a  railroad  built  from  Winston,  N.  C.  to 
Charleston,  S.  C.,  the  primary  object  being  a  coaling  sta¬ 
tion.  Charleston  has  not  definitely  been  decided  upon  as 
the  terminal  of  the  road  and  persistent  efforts  will  be  made 
to  have  the  road  go  to  Southport  instead  of  Charleston. 

The  City  of  Wilmington  will  use  every  effort  to  induce 
those  interested  in  the  building  of  the  road  to  decide  on 
Southport,  and  with  a  view  to  showing  the  greater  fitness 
of  Southport  from  every  standpoint,  the  following  letter 
has  been  sent  by  Mr.  J.  Allen  Taylor,  President  of  the 
Wilmington  Chamber  of  Commerce,  to  Colonel  F.  H.  Fries : 

Wilmington,  1ST.  C.,  March  24th,  1905. 

Col.  F.  H.  Fries, 

Winston-Salem,  IV  C. 

Dear  Sir:  Referring  to  the  project  of  a  railroad  from 
Winston-Salem  to  Charleston,  S.  C.,  in  which  you  are  act¬ 
ively  interesting  yourself,  and  understanding  that  the 
project  has  for  its  primary  object  a  coaling  station  at 


71 


Charleston,  I  take  the  liberty  to  write  you  in  behalf  of 
the  claims  of  Southport,  N.  C.,  which  are  submitted  here¬ 
with,  and  to  which  your  attention  is  earnestly  invited. 

If  the  object  is  to  establish  a  coaling  station  at  the  most 
available  point,  and  the  development  of  the  country  is  but 
incidental  to  this  primary  purpose,  I  take  it  that  established 
lines  will  be  availed  of  to  procure  connections  at  the  smallest 
cost. 

I  desire,  therefore,  to  direct  your  attention  to  the  fact 
that  a  line  from  Winston-Salem  to  High  Point,  Asheville, 
Sanford,  or  Hamlet,  would  put  you  in  touch  with  the  A.  C. 
L.  at  Sanford,  or  the  S.  A.  L.  at  Hamlet,  and  in  either 
case  necessitate  the  building  of  only  25  miles  of  line  from 
Navassa,  a  junction  four  miles  from  Wilmington,  over  a 
level  country  to  Southport. 

Surveys  and  estimates  have  already  been  made  for  this 
line  of  25  miles  and  the  road  can  be  built  for  about 
$7,000  per  mile. 

I  am  informed  that  either  the  A.  C.  L.  or  the  S.  A.  L. 
would  be  willing  to  make  advantageous  traffic  terms,  so 
that  the  object  sought  could  be  accomplished  much  more 
cheaply  to  Southport  than  to  Charleston. 

By  this  route  the  distance  from  Winston-Salem  to  the 
coast  is  about  75  miles  in  favor  of  Southport. 

Now,  as  to  the  relative  advantages  of  Southport  and 
Charleston  as  a  harbor,  I  beg  to  submit  the  following  facts : 

A  vessel  on  her  course  would  go  out  of  her  way  only  54 
miles  round  trip  to  coal  at  Southport,  135  miles  to  Charles¬ 
ton,  and  365  miles  to  Norfolk.  The  depth  of  water  at 
Southport  is  greater  at  present  than  at  Charleston,  and  a 
greater  depth  can  be  obtained  and  maintained  at  Southport 
than  at  Charleston.  The  harbor  at  Southport  averages 
from  25  to  45  feet,  while  at  Charleston  it  is  much  less. 
The  bar  channel  at  Southport  is  perfectly  straight,  while  at 
Charleston  it  is  very  crooked.  The  Federal  Government 
has  recently  made  an  estimate  for  a  depth  of  30  feet  on  the 


bar  at  Southport  and  Charleston  and  reports  are  now  on  file 
at  the  department  in  Washington,  estimating  that  with  an 
expenditure  of  $150,000,  and  a  maintenance  cost  of  $15,000 
per  year,  a  depth  of  30  feet  can  be  obtained  and  maintained 
at  Southport ;  while  at  Charleston  to  obtain  30  feet  depth 
would  be  at  a  cost  of  $2,250,000,  and  the  ability  to  maintain 
this  depth  is  problematical  at  most  any  cost.  The  channel 
to  be  dredged  at  Southport  is  800  feet  and  at  Charleston 
two  and  a  half  miles. 

I  submit  that  the  above  facts  are  worthy  of  your  consid¬ 
eration,  and  hope  that  before  you  definitely  decide  the 
matter  that  you  will  give  them  their  due  weight. 

I  will  add  that  I  am  authoritatively  informed  that  Bruns¬ 
wick  County  would  subscribe  $100,000  to  the  stock,  and  I 
suppose  that  counties  traversed  between  Winston-Salem 
and  junction  points  with  either  the  S.  A.  L.  or  A.  C.  L. 
would  also  subscribe  liberally. 

I  desire  to  extend  you  an  invitation  to  visit  Southport 
at  your  earliest  convenience,  and  to  be  the  guest  of  the 
Wilmington  Chamber  of  Commerce  while  in  Wilmington. 

I  feel  quite  sure  that  you  will  be  astounded  to  know  the 
superior  advantages  of  Southport  as  a  coaling  station,  and 
I  have  only  enumerated  some  of  them. 

We  would  spare  no  effort  to  make  your  trip  pleasant 
as  well  as  valuable  to  you. 

I  will  add  that  Southport  is  a  free  port,  while  compulsory 
pilotage  obtains  at  Charleston  and  elsewhere.  This  is  a 
point  so  vital  as  to  spell  success  for  Southport  and  failure 
to  Charleston. 

Yours  very  truly, 

J.  A.  Taylor, 
President. 

It  is  strange  indeed  that  a  railroad  has  not  long  since 
been  built  to  Southport  and  that  excellent  harbor  taken  advan¬ 
tage  of.  As  a  coaling  station  the  place  has  every  advantage 
over  the  ports  of  Norfolk  and  Charleston.  To  establish  a 


73 


coaling  station  at  Charleston  it  would  be  necessary  to  build 
high  trestles,  at  an  enormous  cost,  from  which  to  dump  the 
coal.  This  would  not  have  to  be  done  at  Southport,  or  at  least 
very  little  trestle  work  would  have  to  be  built,  as  compared 
to  Charleston.  The  bank  along  the  river  front  is  very  high 
and  the  channel  is  deep  to  within  a  short  distance  of  this  bank. 
This  would  be  a  wonderful  advantage  and  one  that  Charleston 
does  not  possess. 

There  is  a  magnificent  bay  at  Southport  and  one  that  is  large 
enough  to  accommodate  an  enormous  fleet.  The  improving 
of  the  harbor  would  afford  a  haven  for  vessels  during  storms 
and  when  in  Southport  harbor  they  would  be  absolutely  pro¬ 
tected  from  the  fury  of  storms.  With  a  wide  and  deep  channel, 
and  it  wrell  merked,  steamers  could  easily  come  in  without  a  pilot 
and  the  largest  of  the  sailing  vessels  would  never  have  to  take 
a  pilot.  The  fact  of  Southport  being  a  free  port  is  wonderfully 
in  her  favor. 

Southport  is  a  small  place  and  consequently  is  not  in  a 
position  to  place  her  advantages  before  the  world  to  such 
an  extent  as  Charleston.  If  those  interested  in  the  proposed 
road  would  investigate  the  matter  thoroughly,  they  would  see 
that  there  is  no  comparison  between  the  advantages  of  the  two 
ports.  Southport  has  every  advantage  and  the  only  one  that 
Charleston  has  is  in  being  a  town  of  importance  and  therefore 
in  a  position  to  press  her  claim.  The  size  of  the  town  when  it 
comes  down  to  the  real  object  of  the  proposed  road  is  of  small 
importance  and  this  being  the  case,  Southport  possesses  all 
the  advantages.  It  is  difficult  to  see  why  Charleston  should 
have  been  seriously  considered. 

The  business  men  of  Wilmington  are  going  to  exert  their 
best  efforts  to  get  Southport  made  the  terminal  instead  of 
Charleston.  Should  they  succeed,  the  old  and  quiet  town  down 
by  the  sea  would  at  once  assume  new  life  and  the  minute  a 
railroad  struck  the  town  the  growth  would  be  wonderful. 
With  a  30  foot  harbor,  the  largest  vessels  would  come  to  South- 
port  and  it  would  become  a  great  shipping  point.  All  this 


74 


business  would  accrue  to  the  railroad  entering  the  town  and  the 
road  could  not  help  but  pay  handsome  profits.  Not  only  would 
this  be  a  benefit  to  the  town  of  Southport  and  the  railroad, 
but  all  the  towns  along  the  line  would  be  wonderfully  benefited 
in  the  way  of  getting  freight  at  a  cheaper  rate. 

Before  taking  any  further  steps  in  the  matter  Col.  Fries  and 
other  capitalists  interested  should  visit  Southport  and  Compare 
her  advantages  with  those  of  Charleston.” 

In  addition  to  the  foregoing,  more  ships  pass  close  to  this 
harbor  than  to  any  other  port  in  this  country.  We  know 
that  many  of  them  will  bunker  at  Southport  as  soon  as  it  is 
known  the  facilities  exist  for  reasons  given  and  because  it  will 
save  them  in  both  time  and  money  to  do  so. 

We  are  assured  that  the  oil  supply  will  be  secured  at 
cheap  rates  since  this  will  be  transported  in  large  vessels  of 
deep  draft,  which  are  economical  carriers,  and  all  of  them  can 
easily  enter  the  harbor  at  any  stage  of  the  tide. 

As  to  the  coal  supply  for  export  and  bunkering,  we  are 
convinced  that  under  the  most  adverse  construction  a  coaling 
station  in  this  harbor  will  be  given  the  same  rates  as  at  Norfolk 
and  Charleston  so  that  competition  will  be  easily  met  with 
other  stations.  Moreover,  we  believe  that  State  action  in 
establishing  modern  terminals  for  a  coaling  station  will  result 
in  securing  a  trunk  line  to  this  harbor  from  the  coal  fields. 
The  opportunities  and  advantages  are  too  manifest.  As  this 
will  unquestionably  result  in  a  paying  investment  from  the 
start  and  the  policy  of  other  states  invites  State  construction, 
we  urge  that  this  State  construct  such  coaling  station  at  once 
as  a  first  step  in  establishing  a  port  with  complete  terminal 
facilities. 

The  Cape  Fear  River  Tidal  Basin 

As  a  complete  knowledge  of  this  basin  is  essential  for  a 
proper  solution  of  the  problems  of  your  Commission,  we  pre¬ 
sume  to  set  them  out  in  some  detail.  Between  Wilmington, 
located  on  the  east  bank  of  the  Cape  Fear  River  at  its  junction 
with  the  Northeast  River  and  the  mouth  of  the  Cape  Fear 


75 


River,  is  a  tidal  basin  about  seventy-seven  miles  long,  with 
a  drainage  area  of  350  square  miles  and  an  average  discharge 
of  about  160,000  cubic  feet  per  second  during  the  ebb.  At 
Wilmington  the  Cape  Fear  is  reported  as  300  and  600  feet 
wide  in  two  official  reports.  It  is  actually  about  450  to  500 
feet  wide  there.  The  river  gradually  widens  to  the  mouth 
of  the  Brunswick  River  (4  miles  below),  where  it  is  about 
one  and  one  half  miles  wide.  From  this  point  to  the  mouth 
its  width  varies  from  two  to  four  miles.  Its  general  direction 
is  south  until  it  reaches  Hew  Inlet,  where  it  turns  to  the 
southwest  until  it  reaches  the  town  of  Southport.  It  then 
flows  southward  until  it  reaches  Baldhead  or  Smith’s  Island, 
when  it  turns  westward  and  flows  past  the  bar. 

The  Ocean  Bar 

This  ocean  bar  is  two  miles  from  the  mouth  of  the  river  and 
about  five  miles  west  of  Cape  Fear  Point.  A  shoal  extends  into 
the  ocean  for  a  distance  of  about  22  miles  from  Cape  Fear 
Point  and  is  known  as  Frying  Pan  Shoals.  There  is  a  light 
ship  at  the  end  of  the  shoals  for  navigation.  These  shoals 
serve  as  a  protection  for  this  ocean  bar  and  the  harbor  at  the 
mouth  of  the  river. 


Improvements 

The  first  improvements  of  this  tidal  basin  were  commenced 
by  North  Carolina  in  1822  and  continued  until  1829,  when  it 
was  taken  over  by  the  Federal  Government  and  has  been  con¬ 
tinuously  carried  on  by  it,  except  from  1839  to  1847,  and  again 
during  the  Civil  War  from  1860  until  1870.  These  improve¬ 
ments  have  consisted  in  dredging  the  channel  from  the  ocean 
across  the  bar  up  this  tidal  basin  to  Wilmington;  also  in  con¬ 
structing  a  dam  from  Federal  Point,  inclosing  New  Inlet,  to 
Zeke’s  Island,  5,300  feet  long,  and  a  defensive  dyke  from  that 
island  to  Smith’s  Island,  a  distance  of  12,800  feet,  known  as 
swash  dam,  and  constructed  for  the  purpose  of  protecting  the 
dam  proper  that  closes  New  Inlet.  With  the  exception  of 


76 


these  two  dams  the  work  has  almost  entirely  been  done  by 
dredging. 

“The  existing  project,  as  modified,  provides  for  a  mean  low 
water  channel  30  feet  deep  and  400  feet  wide  across  the  bar; 
thence  26  feet  deep  and  300  feet  wide  in  the  river  up  to 
Wilmington,  with  an  anchorage  basin  at  Wilmington  2,000  feet 
long,  900  feet  wide  at  the  upper  end,  and  1,100  feet  at  the  lower 
end,  with  approaches  1,500  feet  long  at  both  ends.”  In  1921  the 
project  was  about  64  per  cent  completed.  This  new  project 
also  provides  for  changing  the  channel  across  the  ocean  bar 
and  running  it  in  a  straight  line  southwest  from  Smith’s  or 
Baldhead  Island,  and  for  maintaining  the  present  channel  until 
the  new  channel  is  completed.  There  was  included  in  this 
project  the  construction  of  a  stone  jetty  10,000  feet  long  from 
Baldhead  Island,  parallel  to  the  new  channel,  at  a  cost  of 
$2,275,000,  and  $30,000  annual  maintenance.  This  was  not 
approved  because  of  the  cost  and  uncertainty  as  to  the  necessity 
for  it  after  the  new  channel  is  constructed. 

The  mean  tide  is  4.5  feet  over  the  bar  and  is  projected  at  the 
rate  of  12  miles  an  hour  up  the  tidal  basin,  so  that  high  tide 
at  Wilmington  is  about  2%  hours  later  than  high  water  on  the 
bar.  This  tidal  wave  gives  rise  to  flood  velocities  of  from  three 
to  four  miles  per  hour,  and  ebb  velocities  of  from  five  to  six 
miles  per  hour.  The  mean  tidal  variation  at  Wilmington  is 
2.5  feet. 

The  Harbor  at  the  Mouth  of  the  Cape  Fear  River 

There  is  a  natural  harbor  from  the  bar  at  the  mouth  of  the 
Cape  Fear  and  for  a  distance  of  several  miles  up  the  river 
which  has  a  natural  depth  of  from  35  to  50  feet.  This  depth 
is  maintained  without  cost  to  the  government  for  5  miles  above 
Southport  through  the  natural  scouring  of  the  river.  This 
resulted  from  the  closing  of  the  ISTew  Inlet  channel  by  the  dam 
and  swash  defense  dam  which  forced  the  river  to  follow  its 
present  channel. 

We  cannot  describe  this  harbor  at  the  mouth  of  the  Cape 
Fear  River  in  more  expressive  language,  or  in  a  more  correct 


77 


statement  of  the  facts,  than  to  quote  from  Mr.  James  Sprunt 
in  his  “Chronicles  of  the  Cape  Fear  River,”  (pages  546-547). 
Mr.  Sprunt  is  a  citizen  and  resident  of  Wilmington  and  the 
owner  of  private  terminals  in  this  city.  He  says : 

“In  view  of  the  opening  of  the  Panama  Canal  and  of  the 
manifest  destiny  that  the  United  States  will  have  closer 
commercial  relations  with  the  countries  of  South  America, 
whose  development  is  now  progressing  with  such  rapid 
strides,  the  admirable  location  of  Southport  for  a  govern¬ 
ment  coaling  station  is  apparent,  and  it  will  surely  become 
a  commercial  entrepot  of  importance.  Business  is  quick 
to  avail  itself  of  superior  advantages,  and  the  facilities 
offered  by  Southport  are  unrivaled.  Its  land-locked  harbor, 
ranging  from  thirty-five  to  forty-nine  feet  in  depth,  and 
five  miles  long,  with  a  width  varying  from  one  quarter  to 
three  quarters  of  a  mile,  affords  a  commodious  and  secure 
anchorage  for  the  fleets  of  commerce  and  the  navies  of  war, 
while  the  frowning  ramparts  of  Fort  Caswell  assure  ample 
military  protection.  Its  bar  is  almost  perfectly  protected 
from  the  heaviest  gales;  for  twenty-five  years  the  hurricane 
signals  have  been  hoisted  at  Southport  only  twice,  and  no 
hurricane  wave  can  possibly  enter  the  port.  Safety  of  all 
shipping  is  thus  assured. 

“While  possessing  these  advantages,  Southport  enjoys  the 
distinction  of  being  on  the  direct  line  between  the  vast  coal 
fields  of  the  interior  and  the  points  where  the  coal  will  be 
wanted — Colon  and  Guantanamo  Bay.  It  is  as  near 
Panama  as  Charleston,  and,  being  south  of  Hatter  as,  has 
evident  advantages  over  Norfolk.  No  other  Atlantic  port 
is  so  near  to  the  ports  of  the  Caribbean  Sea  or  to  the  ports 
of  the  east  coast  of  South  America.  Its  climate  is  remark¬ 
ably  fine;  it  has  a  constant  sea  breeze  and  fogs  are  almost 
unknown.  Its  temperature  is  free  from  extremes.  For 
twenty-nine  years  the  mean  temperature  during  the  months 
of  June,  July  and  August  has  been  79  degrees,  and  for 


78 


December,  January  and  February  44-8  degrees.  And  its 
water  supply  is  excellent. 

“Located  upon  the  system  of  inland  waterways  now  in 
process  of  construction,  and  connected  with  the  great  south¬ 
ern  railway  lines,  it  has  every  facility  for  commerce,  and, 
directly  connected  with  the  great  coal  fields,  it  offers  ad¬ 
vantages  for  a  government  coaling  station  second  to  no 
other  port  on  the  coast.” 

A  personal  examination  of  the  temperature  chart  shows  that 
the  mean  average  temperature  of  Southport  during  the  months 
of  December,  January  and  February  has  been  slightly  more 
than  48  degrees,  or  4  degrees  higher  than  stated  by  Mr.  Sprunt. 

The  Southport-Chicago  syndicate  above  mentioned,  in  de¬ 
scribing  the  harbor  of  Southport,  said  : 

“The  practically  land-locked  harbor,  with  a  deep  water 
area  of  more  than  five  square  miles,  at  the  mouth  of  the 
Cape  Fear  River,  1ST.  C.,  is  the  only  great  seaport  on  the 
Atlantic  coast  of  North  America  not  as  yet  connected  with 
its  tributary  country  either  by  rail  or  by  practicable  water¬ 
ways.  Here  the  Gulf  Stream,  which  is  followed  by  all 
steamers  bound  from  Gulf  or  West  India  ports  to  northern 
or  transatlantic  ports,  is  nearer  the  land  than  at  any 
other  point  on  the  coast,  and  the  demand  for  coal  is  great 
and  constant.  Ocean  steamers  requiring  coal  are  compelled 
to  leave  their  course  off  Southport  for  a  side  trip  of  from 
three  to  six  days  to  Newport  News,  Va.,  returning  before 
resuming  their  voyage,  practically  to  the  same  point  at 
which  they  originally  left  their  course.  Less  than  one  day 
would  be  lost  in  coaling  at  Southport  and  coal  would  readily 
command  one  dollar  per  ton  more  than  at  Norfolk  or  New¬ 
port  News.  As  a  matter  of  fact,  with  limited  facilities 
and  less  dispatch,  coal  at  Southport  today  brings  80  cents 
more  per  ton  than  at  the  other  ports  named. 

“Wilmington,  the  present  port  of  entry  for  the  trade  of 
Cape  Fear  River,  is  thirty-five  miles  up  the  stream.  Its 


79 


400,000  tons  of  merchandise,  received  and  shipped  by  sea, 
representing  an  annual  trade  value  of  twenty-five  million 
dollars,  passes  through  Southport  harbor,  with  five  square 
miles  of  sheltered  anchorage  30  to  50  feet  deep,  and  works 
up  and  down  a  narrow,  tortuous  and  dangerous  artificial 
channel,  with  difficulty  and  enormous  expense  maintained 
by  the  United  States  Government  at  an  unsatisfactory  and 
shifting  depth  of  from  fifteen  to  seventeen  feet.  The  depth 
of  water  at  the  entrance  to  Southport  harbor  is  now  twenty- 
two  feet.  Improvements  in  progress  will  shortly  give  a 
permanent  depth  of  thirty  feet.  The  entrance  is  well  lighted 
and  well  buoyed  and  the  distance  from  the  open  sea  to 
anchorage,  with  good  holding  bottom,  less  than  two  miles; 
to  the  Southport  piers,  where  coal  chutes,  docks  and  ware¬ 
houses  will  eventually  be  located,  less  than  four  miles. 

“For  nearly  one  hundred  years  the  safe  and  thoroughly 
protected  natural  channel  at  the  mouth  of  the  Cape  Fear 
River,  and  the  deep  and  capacious  land-locked  harbor  to 
which  that  channel  gave  entrance,  have  been  practically 
unused  and  the  commerce  of  the  river  has  passed  through 
what  was  known  as  the  “New  Inlet,”  an  accidental  channel 
opened  by  a  great  storm  nearly  one  hundred  years  ago  at 
a  point  several  miles  above  the  natural  mouth  of  the  river 
and  through  the  narrow  sand  spit  forming  the  eastern 
bank  of  the  river  and  separating  it  from  the  Atlantic  Ocean. 
Through  the  ‘New  Inlet’  a  portion  of  the  volume  of  the 
river  was  diverted  and  a  practicable  channel  was  formed 
which  was  sufficient  to  accommodate  the  light  drafted 
coasters  and  small  steamers  of  former  days  and  which 
was  much  abused  by  blockade  runners  during  the  Civil  War. 
The  commerce  thus  built  up  sought  security  by  centering 
at  Wilmington,  and  it  has  been  and  still  is  the  policy  of 
that  city  to  oppose  the  transfer  of  her  commercial  interests 
to  the  deep  harbor  at  the  mouth  of  the  river,  where  they 
naturally  belong,  and  where  alone  they  can  be  permanently 
and  successfully  established. 


80 


“All  the  great  railroads  which  tap  the  coal  fields  of  south¬ 
western  Virginia,  West  Virginia,  Kentucky  and  Tennessee 
are  seeking  a  future  outlet  on  the  south  Atlantic  coast  for 
the  purpose  of  realizing  the  large  profits  incident  to  the 
coaling  of  coastwise  and  transatlantic  steamers.  Southport 
is  the  only  point  at  which  the  maintenance  of  such  an  out¬ 
let  for  coal  and  naval  stores  is  at  least  practicable.  Charles¬ 
ton,  the  only  alternative  port,  is  exposed  to  the  full  fury 
of  easterly  gales  and  has  not  yet  recovered  from  the  devas¬ 
tation  caused  by  the  storms  of  1893  which  washed  vessels 
from  their  moorings  up  into  the  city  streets  and  did  in¬ 
calculable  damage  to  docks  and  wharves  not  only  in  that 
city,  but  at  Savannah,  Port  Royal,  Beaufort  and  at  every 
other  port  on  the  southeastern  Atlantic  coast  save  only  at 
Southport,  where  the  rise  of  the  water  in  the  safe  and 
sheltered  harbor  did  not  exceed  seven  feet  and  did  no  dam¬ 
age  whatever. 

About  ten  years  ago  Colonel  S.  A.  Jones  of  North  Carolina, 
at  one  time  the  chief  engineer  of  the  plant  system  of  railroads, 
presented  to  Congress  a  joint  resolution  passed  by  North  Caro¬ 
lina,  Florida,  Tennessee  and  19  other  states  urging,  among 
other  things,  the  establishment  of  a  foreign  mail  route  to  South 
America  from  the  Cape  Fear  Harbor.  In  stating  the  reasons 
which  impelled  North  Carolina  to  pass  the  joint  resolution  he 
said : 

“North  Carolina,  because  her  port  is  on  the  shortest 
(route)  and  is  on  an  air  line  from  the  center  of  American 
population  and  the  Tennessee  coal  fields  and  the  great 
Northwest,  through  Wilmington  and  Southport  Harbor,  to 
reach  the  entire  east  coast  of  South  America,  the  West 
Indies,  southwestern  Europe,  and  at  the  same  time  save 
the  people  of  North  Carolina  over  $2,000,000  per  annum  on 
coal  alone,  and  a  like  amount  to  the  people  of  South  Caro¬ 
lina,  and  break  up  a  freight  discrimination  prevailing 
against  North  Carolina  of  $15,000,000  per  annum  more  for 
the  same  service  rendered  her  by  the  railroads  than  they 


81 


are  charging  for  the  identical  same  service  rendered  to  her 
adjoining  sister  states,  because  North  Carolina  has  not  got 
open  a  rate-basing  port. 

“The  reason  for  the  discrimination  against  her  ports  is 
to  maintain  the  right  to  collect  this  discrimination  and 
maintain  the  long  railroad  and  long  ocean  haul  that  the 
opening  of  the  North  Carolina  [port]  would  cut  in  two. 

“Yet,  notwithstanding,  North  Carolina,  with  its  natural 
harbor  at  Southport,  second  to  no  other  harbor  south  of 
Norfolk  on  the  Atlantic  coast,  and  on  a  direct  air  line  as  far 
hack  as  Winnipeg,  Canada,  clear  across  the  United  States 
and  on  across  the  coast  of  South  America,  cannot  get  a 
through  rail  and  water  rate,  domestic  or  foreign.” 

In  the  joint  resolution  itself  we  find  the  following: 

“Southport,  N.  C.,  is  the  closest  harbor  that  can  be  cheaply 
made  available  for  ocean  steamers  drawing  thirty-five  and 
forty  feet  of  water,  and  be  closer  to  unlimited  base  of  sup¬ 
ply  of  coal  by  over  one  hundred  miles  of  railroad  haul, 
than  any  other  such  harbor  to  any  other  American  base 
of  coal  supply  on  the  American  continent  that  can  be  made 
available  for  so  great  a  saving  to  the  navy  and  to  commerce, 
for  so  small  an  amount  of  money,  and  which  will  be  the 
closest  tide  water  that  can  float  the  American  navy  by  over 
one  hundred  miles  to  the  great  bread,  meat  and  grain  pro¬ 
ducing  states  than  any  other  harbors  cn  the  coast  of  the 
United  States  that  can  be  equipped  with  many  times  the 
amount  of  money  asked  for.” 

The  Anchorage  Basin 

The  protected  anchorage  basin  begins  at  the  ocean  bar  and 
extends  into  and  up  the  river  and  is  ample  for  any  number  of 
vessels  which  may  enter  the  harbor.  The  width  of  this  basin 
from  Southport  to  Fort  Caswell  is  more  than  two  miles  and 
extends  for  about  the  same  distance  towards  the  mouths  of 
Dosher  and  Dutchman’s  creeks  and  Elizabeth  River  on  the 


—6 


south  and  west.  Between  and  on  both  sides  of  this  river  and 
the  two  creeks  is  a  salt  marsh  which  can  be  economically  con¬ 
verted  into  an  anchorage  basin  of  at  least  sixteen  square  miles 
by  cheap  dredging.  This  is  unnecessary  for  present  or  antici¬ 
pated  anchorage  space,  but  it  might  well  be  undertaken  as  an 
investment,  since  the  land  reclaimed  would  be  exceedingly 
valuable.  The  narrow  neck  of  land  separating  this  marsh  basin 
from  the  ocean  would  be  widened  and  with  the  other  reclaimed 
land  would  be  exceedingly  valuable  for  business,  residence  and 
agricultural  purposes.  This  opening  up  of  Elizabeth  River, 
which  is  to  be  the  outlet  for  the  coastwise  inland  waterway 
south  of  Southport,  would  enable  vessels  entering  the  harbor  to 
anchor  or  dock  in  fresh  water. 

On  the  northern  edge  of  Southport  is  Fiddlers  Drain.  Two 
miles  north  of  this  is  Prices  Creek  and  about  the  same  distance 
further  north  is  Walders  Creek.  At  the  mouth  of  each  of  these 
is  an  extensive  area  of  marsh  land  which  can  be  readily  dredged 
to  any  depth  as  anchorage  basins.  With  the  growth  of  com¬ 
merce  this  dredging  will  certainly  be  done  because  in  these 
basins  thus  created  piers  can  be  constructed  so  that  vessels  can 
avoid  the  current  when  docking  perpendicular  to  the  river. 

The  entire  Cape  Fear  River  basin  can  be  dredged  to  practic¬ 
ally  any  depth  as  far  as  Wilmington  without  encountering  any 
serious  obstacles.  In  two  or  more  places  in  the  present  channel 
shell  deposits  have  been  found  in  the  river  channel.  Of  course 
it  will  cost  a  very  large  amount  of  money,  greater  doubtless 
than  present  or  immediately  prospective  commerce  will  war¬ 
rant.  To  this  first  great  outlay  must  also  be  added  a  large 
annual  maintenance  charge.  All  of  such  improvement  of  the 
river  channel  will  necessarily  be  done  by  the  Federal  Govern¬ 
ment.  Before  such  improvement  is  even  recommended  by  the 
II.  S.  engineers  the  commerce  of  the  port  must  demand  it. 
Even  when  convinced  of  the  necessity  for  such  improvements 
Congress  is  slow  to  act  or  appropriate  the  necessary  funds, 
frequently  failing  to  appropriate  for  unfinished  parts  of  a  pro¬ 
ject  already  begun  and  useless  without  being  completed. 


83 


The  west  bank  of  the  river  from  Fiddlers  Drain  to  Walders 
Creek  is  quite  elevated  above  high  tide.  It  is  sufficiently  high 
to  permit  of  loading  coal  or  oil  into  the  largest  vessels  by 
gravity.  The  natural  channel  of  the  river  follows  generally  this 
west  bank  the  entire  length  of  this  tidal  basin  and  this  high 
land  is  generally  found  along  this  bank.  Between  Fiddlers 
Drain  and  Prices  Creek  lies  the  land  which  has  been  offered  the 
Commission  for  the  purpose  of  port  development. 

Southport  or  Wilmington 

It  is  generally  conceded  that  the  development  of  a  tide  water 
terminal  by  the  State  should  be  located  somewhere  on  the  tidal 
basin  of  the  Cape  Fear  River,  at  one  or  the  other  of  the  two 
municipalities  on  this  basin.  The  question,  therefore,  is  re¬ 
duced  to  Southport  or  Wilmington. 

A.  Wilmington.  We  invite  your  attention  to: 

1.  The  anchorage  basin  or  harbor.  The  anchorage  basin  at 
Wilmington,  when  completed  under  present  plans,  will  be  2,000 
feet  long,  900  feet  wide  at  the  upper  end,  and  1,100  feet  at  the 
lower  end  with  approaches  1,500  feet  long  at  both  ends.  We  as¬ 
sume  that  this  basin  will  be  located  below  the  ferry  crossing  be¬ 
cause  the  river  is  not  over  500  feet  wide  at  that  point  and  the 
widening  to  900  feet  would  be  very  expensive,  even  if  practical. 
This  basin  will  not  permit  of  anchoring  many  vessels  with  neces¬ 
sary  swinging  space,  so  that  practically  every  vessel  must  actu¬ 
ally  tie  up  to  the  docks  and  be  under  expense  for  the  usual 
charges  all  of  the  time  in  port.  To  obviate  this  situation  will  in¬ 
volve  large  expenditures,  which  will  grow  with  increasing  com¬ 
merce. 

2.  The  approaches  to  the  harbor.  In  order  to  reach  this 
anchorage  basin,  the  river  channel  for  24  miles  above  South- 
port  must  be  widened  and  straightened  and  maintained  at  an 
average  depth  of  27  feet  at  least,  all  of  which  depends  now,  as 
in  the  past,  upon  uncertain  Federal  appropriations.  Moreover, 
it  is  generally  recognized  that  the  present  channel  is  entirely 
inadequate  for  the  passage  of  ships  which  must  be  utilized  in 


84 


order  to  economically  transport  ocean-going  freight.  None  of 
this  draft  can  now  navigate  this  channel.  Many  of  lesser  draft 
cannot  navigate  without  lightering  and  all  will  wait  for  tides 
and  daylight. 

3.  Terminal  facilities .  It  is  claimed  before  your  Commission 
(testimony  of  J.  S.  Williams)  that  Wilmington  has  adequate 
port  facilities  at  the  present  time,  and  has  the  same  unloading 
facilities  as  at  Norfolk  and  Charleston  to  the  extent  of  eco¬ 
nomically  handling  9  ships  at  the  same  time.  In  order  that 
you  may  form  your  own  conclusions  as  to  this  matter,  we  now 
call  your  attention  to  the  following  data,  taken  from  the  official 
reports  of  the  engineering  department:  There  are  73  wharves 
at  Wilmington.  The  city  owns  seven  with  a  total  frontage  of 
350  feet,  which  it  secured  from  the  United  States  Government. 
At  present  all  of  the  important  wharves  are  located  on  the 
east  side  of  the  river,  leaving  the  western  bank  of  the  river 
practically  undeveloped,  which  offers  excellent  opportunity  for 
the  development  of  public  terminals.  The  wharf  owned  by 
the  Wilmington  Compress  &  Warehouse  Company  is  the  only 
wharf  of  any  size  open  to  the  public  in  Wilmington.  Their 
rates  for  wharfage,  handling,  and  storage  are  fixed  and  equal 
to  all,  but  controlled  solely  by  themselves.  Their  wharf  has 
a  frontage  of  436  feet.  The  wharf  is  covered  and  used  as  a 
warehouse,  and  just  back  of  this  there  are  three  brick  ware¬ 
houses,  one  containing  a  modern  compress.  The  combined  floor 
space  is  about  200,000  square  feet.  This  wharf  is  equipped 
with  a  Hunt  elevator  for  unloading,  and  the  warehouses  with 
distributing  tracks.  These  warehouses  store  fertilizer  materials, 
fertilizer,  cotton  and  general  merchandise. 

The  water  terminals  owned  by  the  Seaboard  Air  Line  con¬ 
tain  a  total  frontage,  including  slips,  of  2,700  feet.  These 
terminals  contain  warehouses  with  a  combined  floor  space,  in¬ 
cluding  platforms  and  wharves  adjacent,  of  245,834  square  feet. 
The  wharves  are  fitted  with  modern  appliances  for  unloading 
and  the  warehouses  with  distributing  tracks.  The  water  termi¬ 
nals  owned  by  the  Atlantic  Coast  Line  Railroad  Co.  contain 


85 


a  total  frontage  of  about  2,700  feet  and  warehouse  with  a 
combined  floor  space  of  about  100,000  square  feet.  Their  stor¬ 
age  warehouses  are  fitted  with  modern  appliances  for  trans¬ 
ferring  cargoes  into  the  buildings.  The  Clyde  Line  Steamship 
Co.  has  purchased  property  and  constructed  a  warehouse.  This 
property  has  a  river  frontage  of  418  feet  and  the  warehouse  a 
floor  space  of  51,500  square  feet.  Other  wharves  well  equipped 
with  transfer  facilities  are  those  belonging  to  the  Springer  Coal 
Company,  the  three  fertilizer  manufactories,  Champion  Com¬ 
press  Company  and  the  Hilton  Compress  &  Warehouse  Com¬ 
pany. 

A  belt  line  railroad  extends  along  all  that  portion  of  the 
water  front  south  of  the  Atlantic  Coast  Line  yards;  north  of 
that  point  the  wharves  are  served  by  spur  tracks  from  the 
Atlantic  Coast  Line  Railroad  and  Seaboard  Air  Line  Railway. 

4.  Traffic.  We  have  previously  indicated  the  volume  of  traffic 
that  now  enters  the  port  of  Wilmington.  This  we  believe  com¬ 
pares  very  favorably  in  tonnage  and  volume  with  that  entering 
the  ports  of  Charleston,  Savannah  and  Jacksonville.  At  one 
time  this  traffic  was  as  large  as  all  three  combined  and  yet,  in 
spite  of  this,  the  fact  remains  that  Wilmington  has  never  been 
declared  a  rate-basing  port  of  entry  for  this  State.  This  is, 
as  we  all  recognize,  the  crying  need  of  our  State. 

5.  Lightering.  We  can  illustrate  this  best  by  quoting  from 
letter  of  Heide  &  Company,  of  Wilmington,  of  June  30,  1917, 
to  the  District  Engineer: 

“In  reply  we  beg  to  submit  information  contained  in  two 
sheets  attached  as  well  as  this  letter. 

“You  will  note  in  the  first  statement  a  list  of  vessels  which 
had  to  go  to  neighboring  ports  to  discharge  part  cargo 
before  coming  to  Wilmington,  N.  C.  In  the  case  of  the 
potash  ships,  a  great  many  of  them  did  this  on  account  of 
expecting  to  be  ordered  to  the  factories  beyond  Wilmington, 
the  depth  at  these  points  being  only  about  16  feet  on  the 
North  East  River  and  about  19  feet  6  inches  at  Navassa  on 
the  Cape  Fear  River.  Even  when  lightened  so  that  the 


86 


draft  has  not  exceeded  the  amount  of  water  between 
Wilmington  and  these  factories  we  have  had  trouble  with 
vessels  grounding  on  account  of  the  twisting  of  the  river 
between  here  and  Havassa  factory. 

“You  will  note  in  first  statement  a  list  of  vessels  which 
on  this  statement.  These  vessels  were  forced  to  go  to  other 
ports  to  discharge  either  because  their  owners  feared  ground¬ 
ing  or  on  account  of  actually  being  too  deep  to  come  to 
Wilmington  with  a  full  cargo.  The  owners  of  the  Charlton 
Hall  have  several  times  expressed  themselves  that  they  pre¬ 
fer  to  charter  their  boats  for  almost  any  port  besides 
Wilmington,  H.  C. 

“In  our  second  statement  you  will  note  vessels  whose  draft 
was  about  23  feet  or  over.  You  will  note  that  several  of 
these  vessels  had  to  lighter  cargo  before  being  able  to  make 
the  trip  up  the  river.  This  expense  is  considerable  and  un¬ 
doubtedly  works  a  hardship  on  the  port,  as  importers  have 
to  take  what  ships  are  offered  now  and  if  they  cannot  pick 
up  small  ships  they  must  send  the  large  ones  to  Charleston 
and  ship  from  that  port  to  the  Wilmington  territory. 

“You  will  note  the  steamship  Santa  Rosalia.  Hot  only 
did  this  vessel  ground  at  quarantine,  but  in  making  the 
trip  up  the  river  she  struck  the  bank  while  making  a  turn, 
the  tide  turned  her  completely  around  and  she  then  headed 
down  to  Southport  again.  Fortunately  the  Wilmington 
was  passing  and  at  a  wider  point  down  the  river  assisted 
the  Santa  Rosalia  to  turn.  She  came  on  to  Wilmington 
without  further  incident. 

“We  have  had  many  complaints  from  masters  of  steamers 
regarding  the  depth  of  water  in  the  river,  especially  in 
connection  with  the  many  turns  to  be  made  on  the  trip 
up.  We  do  not  keep  any  record  of  these  complaints,  except 
when  there  is  actual  grounding,  but  we  believe  that  every 
effort  should  be  made  to  maintain  the  present  depths  and 
if  possible  to  increase  them. 

“If  the  river  was  straight  there  would  not  be  the  hazard 


87 


that  there  is  at  present,  therefore  it  appears  to  us  that  it  is 
absolutely  essential  that  dredging  work  should  be  main¬ 
tained. 

We  also  quote  from  report  of  the  Chamber  of  Commerce  of 
Wilmington  of  July  16,  1917,  as  follows: 

“We  may  add  that  our  principal  competitors  for  com¬ 
merce,  more  particularly  for  foreign  exports,  have  been,  and 
still  are,  Norfolk,  Charleston  and  Savannah.  Each  of  these 
ports,  neighbors  to  ours,  have  a  greater  depth  of  water  than 
Wilmington,  and  therefore  we  are  entitled  to  some  consider¬ 
ation  on  that  plea,  because  we  have  not  been  able  to  keep 
pace  with  the  competition  of  these  points,  as  we  cannot  ac¬ 
commodate  the  deep  draft  vessels  which  they  employ.” 

Vessels  too  large  when  fully  loaded  which  touch  at  Norfolk, 
Charleston,  or  Savannah  before  coming  to  Wilmington,  N.  C., 


to  discharge:  Draft  on 


Date  of 

Cargo 

Arrival 

Steamer's  Name 

Arrival 

Ft. 

In. 

Nederland  _  _  _ 

Jan. 

8, 

1912 

Potash  salts 

21 

0 

Gratia 

Feb. 

27, 

1912 

u  u 

15 

0 

Drumlanrig  ,  _  . 

June 

21, 

1912 

Nitrate  soda 

19 

0 

Manchester  Merchant. 

July 

10, 

1912 

Potash  salts 

22 

4 

Anglo  Canadian 

July 

13, 

1912 

Nitrate  soda 

18 

6 

Pruth  _  _ 

Oct. 

5, 

1912 

Potash  salts 

16 

10 

Hittfeld  _ 

Oct. 

10, 

1912 

66  66 

21 

6 

Helsinborg 

Dec. 

20, 

1912 

66  66 

18 

6 

Waltraute _ _ 

June 

14, 

1913 

66  u 

19 

6 

Alster_  _  _  _  . 

June 

12, 

1913 

u  a 

19 

9 

Rokeby 

July 

27, 

1913 

a  u 

18 

0 

Tropei 

Aug. 

10, 

1913 

u  u 

16 

8 

Unfield  _ 

Aug. 

28, 

1913 

u  u 

19 

0 

Woglinde  _  . 

Sept. 

11, 

1913 

a  a 

19 

3 

Kylestrome 

Sept. 

12, 

1913 

Salt 

18 

3 

Nora  _ 

Oct. 

22, 

1913 

Potash  salt 

18 

9 

Holtye 

Oct. 

25, 

1913 

a  a 

15 

10 

Riverdale_ 

Nov. 

27, 

1913 

66  u 

22 

0 

Waverly 

Nov. 

28, 

1913 

66  66 

15 

8 

Eagle  Point 

Dec. 

4, 

1913 

66  66 

19 

6 

Lingfield 

Dec. 

18, 

1913 

66  66 

19 

3 

Urna 

Dec. 

22 

1913 

66  66 

18 

2 

88 


.T  oa  eh  ini  Zelck  _ 

...  Dee. 

22, 

1913 

ii  ii 

15 

5 

Charlton  Ilall  _  _  _ 

.  Jan. 

1, 

1914 

Nitrate  soda 

19 

6 

Barrsheld _ 

Jan. 

3, 

1914 

Potash  salt 

17 

4 

Mascara.  - 

.  .  Jan. 

4, 

1914 

Nitrate  soda 

18 

2 

Snowdonia  n 

Jan. 

11, 

1914 

Potash  salt 

15 

8 

Locksley.  ___ 

Mar. 

24, 

1914 

a  a 

15 

6 

Charlton  Hall- 

June 

30, 

1914 

Nitrate  soda 

20 

6 

Zvldijk  _ 

.  .  June 

30, 

1914 

Potash  salt 

16 

5 

Harhurg _  .  . 

.  .  July 

4, 

1914 

ii  ii 

17 

4 

Honenfelde _ 

-  July 

10, 

1914 

a  a 

20 

2 

Kiel- _ _ 

July 

29. 

1914 

a  a 

20 

3 

Lena  _  _  _  _ 

Sept. 

1, 

1914 

a  a 

19 

9 

Isthmian _ 

May 

26. 

1915 

Nitrate  soda 

19 

7 

Howick  Hall  _ 

Mar. 

31. 

1916 

ii  ii 

22 

O 

imd 

Pennsylvanian  _ 

.  Nov. 

18, 

1916 

ii  ii 

22 

2 

List  of  steamers 

handled  by  Heide  &  Co.  at  the 

port  of  Wil- 

mington,  N".  C.,  from  January  1,  1912,  to  date,  whose  draft  ex¬ 
ceeded  23  feet : 

Date  of  Draft  Remarks 


Steamer's  Name  Arrival  Ft.  In. 


Shiela _ 

April  14, 

1912 

23 

0 

No  trouble. 

Celia.  __  _ 

June 

1, 

1912 

26 

0 

Went  ashore  twice  while 
coming  up  Cape  Fear 
River. 

Auchenblae  -- 

Nov. 

27, 

1912 

23 

0 

No  trouble. 

Chimu _  _  . 

Feb. 

1, 

1913 

25 

5 

ii  ii 

Vermont _ 

Mar. 

13, 

1913 

23 

9 

ii  ii 

Strathardle _ 

Mar. 

26. 

1913 

22 

11 

Went  ashore  at  No.  2 
buoy  while  approaching 
bar.  Floated  with  assists 
ance  of  tug.  No  trouble 
in  river. 

Auchencrag _ _ 

May 

1, 

1913 

24 

7 

No  trouble. 

St.  Nicholas _ 

May 

7, 

1913 

24 

0 

ii  ii 

Foxton  Hal _ 

May 

14, 

1913 

24 

0 

ii  ii 

Strathallan _ 

May 

17, 

1913 

23 

3 

ii  ii 

Kildale—  _ 

May 

20, 

1913 

24 

8 

ii  a 

Queen  Elizabeth  June 

24, 

1913 

25 

4 

a  a 

Dorothy _ 

Feb. 

19, 

1914 

23 

2 

Rubbed  bottom  while 
passing  No.  9  dredge. 

Bergenhus 

May 

4, 

1914 

23 

8 

No  trouble. 

Strathgyle..  _  _ 

May 

15, 

1914 

23 

0 

ii  ii 

Geo.  Pyman _ 

June 

23, 

1914 

24 

0 

ii  ii 

Strathlorne 

Oct. 

6, 

1914 

23 

10 

ii  ii 

89 


Falls  City 

Oct. 

16, 

1914 

25 

5 

a  a 

Bellgrano  _ 

Mar. 

1, 

1915 

25 

4 

Grounded  at  Southport. 
Pulled  off  by  tugs  and 
revenue  cutter. 

Charlton  Hall... 

April 

28, 

1915 

26 

0 

Over  bar.  Anchored  at 

Southport,  lightered  car- 

go. 

25 

0 

Up  river. 

Hartington  _ 

May 

3, 

1915 

25 

6 

No  trouble. 

Hornelen 

May 

28, 

1915 

23 

7 

u  u 

Bantu  _  _  _ 

Dec. 

21, 

1915 

24 

o 

a  a 

Maipo  _  _ 

Oct. 

24. 

1916 

30 

0 

Over  bar.  Anchored  at 
Southport,  lightered  car- 

25 

10 

go. 

Up  river. 

Santa  Rosalia _ 

Feb. 

25, 

1917 

25 

3 

Grounded  at  quarantine 
station,  Southport. 

Hilonian _ 

April 

8, 

1917 

25 

4 

No  trouble. 

Blaamyra 

June 

14, 

1917 

25 

0 

ii  ii 

Dora  Baltea*__. 

Sept. 

3, 

1916 

24 

0 

a  44 

*Came  to  Wilmington  and  completed  her  cargo,  sailing  thence. 


6.  Difference  in  costs.  The  cost  of  vessels  entering  and  dis¬ 
charging  at  Wilmington  as  compared  with  Southport  is  meas¬ 
ured  by  a  number  of  factors.  (1)  The  time  consumed  in  pass¬ 
ing  up  the  channel  of  the  river  from  and  return  to  Southport, 
about  25  miles  distant.  (2)  Is  the  additional  cost  of  lightering 
in  certain  cases.  (3)  Delays  incident  to  waiting  for  daylight. 
(4)  Delays  incident  to  waiting  for  the  tide.  (5)  The  necessity 
for  docking  at  practically  all  times  instead  of  lying  at  anchor 
in  the  harbor. 

An  approximation  of  the  cost  of  vessels  of  different  tonnage 
from  Southpoft  to  Wilmington  and  return  is  obtained  by  com¬ 
puting  cost  of  charter  at  $1.00  per  ton  per  month,  from  which 
we  have: 

Charter  of  3,500  ton  vessel  12  days  $1,400.00 

“  “  5,000  “  “  15  “  2,500.00 

“  “  10,000  “  “  20  “  6,666.67 


90 


For  operating  expenses : 

Vessel  Steam-  Cost  Lay  Days  Cost 
ing  Days 

3,500  ton  2  $540.00  10  $1,750.00 

5,000  “  2  750.00  13  2,600.00 

10,000  “  2  860.00  18  3,960.00 


Total 

$  3,690.00 
5,850.00 
11,486.67 


This  is  based  on  discharging  700  tons  per  day  and  we  assume  that 
the  vessel  will  carry  double  the  net  tonnage;  i.e.,  a  3500  ton  ship 
will  carry  7,000  tons  of  cargo,  from  which  we  find  the  cost  of  charter 
and  operating  expenses  if  no  cargo  is  taken  on : 


For  a  3500  ton  vessel _  $3,690.00 

For  a  5000  ton  vessel _  5,850.00 

For  a  10000  ton  vessel _  11,486.67 

If  cargo  is  taken  on  we  assume  ten  days,  which  will  be  the  mini¬ 
mum  for  loading,  so  must  add  the  following : 

Grand 

Charter  Operating  Total 

For  a  3,500  ton  vessel  10  days  $1,166.67  $1,750.00  $  6,606.67 

“  “  5,000  “  “  10  “  1,666.67  2,000.00  9,516.67 

“  “  10,000  “  “  10  “  3,333.33  2,200.00  17,020.00 


We  are  convinced  that  a  10,000  ton  vessel  could  not  navigate 
the  river  from  Southport  to  Wilmington,  so  would  have  to 
lighter  at  great  expense  at  Southport  or  at  some  other  port  out¬ 
side  of  the  State. 

The  foregoing  takes  no  account  of  the  cost  of  pilotage  which 
is  based  on  the  draft  of  the  vessel  and  not  on  tonnage.  For 
example,  a  vessel  drawing  20  feet  of  water  the  cost  is  to  South- 
port,  $78.30  and  to  Wilmington,  $125.28  each  way.  A  vessel 
coming  into  Southport  to  hunker  will  only  pay  pilotage  one 
way  and  with  a  material  increase  in  shipping  these  charges  will 
be  much  reduced.  The  average  cost  of  docking  in  Wilmington 
is  $150.00. 

These  costs  are  much  less  than  those  of  the  Board  of  Engi¬ 
neers  because  no  account  is  taken  of  insurance,  of  interest  on 
the  investment,  etc.  In  short,  we  have  endeavored  to  reduce 
our  difference  in  cost  to  a  minimum. 

7.  Coal  and  oil.  We  have  sufficiently  amplified  Wilmington’s 
position  as  a  bunkering  or  coal  exporting  port.  Beyond  serving 


01 


those  ships  actually  bound  for  that  port  there  is  no  real  chance 
of  its  being  a  competing  port  for  coal  or  oil.  Its  most  wildly 
enthusiastic  boosters  will  admit  this  as  a  fact.  With  bunkering 
and  coal  exporting  terminals  established  at  Southport,  we  have 
no  doubt  trade  in  coal  and  oil  at  Wilmington  will  certainly  in¬ 
crease  very  greatly  in  volume  and  value. 

Wilmington,  however,  is  now  and  will  always  remain  the 
business  center  of  our  tide  water  port.  She  has  today  and  will 
continue  to  have  all  of  the  banking  and  other  facilities  upon 
which  the  commerce  of  the  port  must  depend.  She  will  be  the 
first  and  greatest  beneficiary  from  the  establishment  of  port 
terminals  wherever  located  in  the  Cape  Fear  tidal  basin. 
Should  these  terminals  be  located  at  Southport,  not  only  the 
banking  but  all  the  other  business,  including  the  headquarters 
of  all  shipping,  will  center  in  and  function  from  Wilmington. 
The  mere  location  of  terminals  at  Southport  will  not  and  can 
not  change  this  situation.  It  will  simply  add  very  greatly,  as 
we  are  convinced,  to  the  growth  in  population,  in  business,  in 
commerce,  both  domestic  and  foreign,  and  in  material  wealth 
and  prosperity  to  Wilmington.  That  Southport  will  grow  with 
increase  of  business,  due  to  terminals,  there  can  be  no  question ; 
but  long  before  Southport  can  hope  to  become  a  competitor  in 
any  sense  the  two  places  will  have  been  joined  together  by  a 
practically  continuous  stretch  of  terminals  and  terminal  rail¬ 
ways,  and  have  become  essentially  one  municipality. 

We  have  endeavored  in  every  way  to  resolve  this  question 
dispassionately  and  without  prejudice  of  any  kind  and,  as  we 
see  it,  the  establishment  of  State  terminals  at  Wilmington  will 
not,  and  cannot,  cause  the  growth  and  development  she  desires 
and  to  which  we  think  she  is  justly  entitled;  (1)  because  she 
now  has  and  for  many  years  has  had  port  terminal  facilities 
which  evidence  presented,  to  you  by  her  own  experts  demon¬ 
strates  are  modern  and  more  than  adequate  for  expeditiously 
handling  all  traffic  she  could  develop;  (2)  because  the  location 
of  these  terminals  there  is  in  direct  opposition  to  the  provisions 
of  nature,  which  has  seen  fit  to  provide  all  the  essentials  for  a 


92 


harbor,  such  as  depth  of  water,  proximity  to  the  ocean,  etc.  at 
another  point  on  the  tidal  basin;  (3)  because,  in  spite  of  having 
more  traffic  than  other  ports,  such  as  Charleston,  Savannah 
and  Jacksonville,  she  has  been  unable  to  secure  for  ISTorth  Caro¬ 
lina  an  ocean  port  of  entry,  which  is  necessary  to  relieve  our 
people  of  the  octopus  of  freight  rate  discrimination.  We  con¬ 
clude,  therefore,  that  her  own  interests  and  especially  the  more 
vital  interests  of  the  State  demand  that  the  State  terminals  be 
located  at  Southport. 

B.  Southport. 

1.  The  anchorage  basin  or  harbor.  This  anchorage  basin  has 
been  fully  described.  It  is  there  and  will  cost  the  State  noth¬ 
ing.  Any  freight  ship  in  the  world  can  enter  it  at  any  time 
during  the  24  hours  of  every  day  in  the  year.  It  can  anchor 
in  good  holding  ground  with  ample  swinging  space  however 
many  vessels  may  be  in  the  harbor.  It  will  not  crowd  out  or 
endanger  other  shipping  however  numerous.  It  will  be  always 
protected  from  storms  and  tidal  waves.  It  has  entered  a  harbor 
of  the  first  class  by  international  definition,  because  it  has  more 
than  30  feet  of  water  at  all  stages  of  the  tide. 

2.  The  approaches  to  the  harbor.  When  you  cross  the  ocean 
bar  you  are  in  the  Southport  harbor.  The  channel  across  this 
bar  is  maintained  by  simple  dredging.  It  can  be  and  will  be 
maintained  at  any  depth  desired,  and  is  and  has  been  satisfac¬ 
torily  buoyed  and  lighted  for  navigation. 

3.  Terminal  facilities.  The  following  is  the  official  report  as 
to  existing  terminal  facilities  below  Wilmington :  “Below  Wil¬ 
mington  there  are  27  wharves,  of  which  2  are  at  Fort  Caswell 
and  12  at  Southport.  One  wharf  between  Wilmington  and  South- 
port,  belonging  to  a  fertilizer  factory,  has  a  frqntage  of  226 
feet  and  is  equipped  with  an  elevator  and  2  derricks.  Four  of 
the  wharves  at  Southport  and  vicinity  are  owned  by  the  Fed¬ 
eral  Government.  All  wharves  below  Wilmington,  except  at 
Fort  Caswell,  are  free  to  water  carriers  when  not  in  actual  use 
by  the  owners,  to  which  must  be  added  a  quarantine  station  of 
the  first  class.”  It  is  manifest  that  there  exists  a  clear  field  for 


93 


locating  and  constructing  modern  terminal  facilities  that  will 
most  economically  meet  existing  and  contemplated  demands  of 
shipping.  This  condition  insures  no  tearing  down  or  demoli¬ 
tion  of  existing  terminals  and  no  interference  with  private  or 
railway  terminals  already  in  existence.  Arrangements  have 
been  made  to  avoid  and  prevent  any  holding  up  of  the  State 
in  prices  demanded.  Already  a  suitable  site  has  been  tendered 
free  of  cost  to  the  State.  We  now  present  to  you  blue  prints 
of  this  site  showing  its  location  with  respect  to  Southport,  and 
a  proposed  development  of  terminals  which  cost  the  owners 
many  thousands  of  dollars.  These  blue  prints  we  believe  will 
be  of  assistance  to  you  in  determining  the  approximate  cost 
of  terminals,  such  as  you  will  recommend  for  construction  at 
Southport.  The  estimated  cost  of  these  terminals  at  that  time, 
including  a  railroad  to  Navassa,  was  $2,000,000.00.  The  esti¬ 
mated  cost  of  the  same  terminal  facilities  today,  we  think,  should 
be  obtained  through  computations  by  an  expert  terminal  engi¬ 
neer.  We  do  not  have  detailed  data. 

4.  Traffic.  More  ships  pass  within  a  short  distance  of  South- 
port  than  pass  any  other  port  in  this  country.  In  addition, 
every  vessel  that  comes  to  the  port  of  Wilmington  must  pass 
and  return  through  Southport.  We  have  shown  that  a  large 
proportion  of  the  passing  ships  on  the  ship  lanes  will  “bunker,” 
i.e.,  secure  coal  and  oil,  at  Southport  if  facilities  are  available. 
It  is  certain  that  many  of  those  entering  for  coal  or  oil  would 
gladly  accept  freight  consignments  less  than  full  cargo.  It  is 
equally  certain  that  others  will  make  regular  calls  on  schedule 
at  this  port  when  its  facilities  are  known  to  be  in  existence. 
We  have  positive  assurance  from  two  companies  that  they  will 
do  this.  It  is  these  relatively  small  consignments  and  regular 
calls  rather  than  full  cargoes  that  establish  a  rate  basing  port 
at  tide  water. 

5.  Lightering.  Manifestly  all  expense  of  lightering  will  be 
obliterated  with  terminals  at  Southport. 

6.  Costs.  The  expense  of  entering  the  port  at  Southport  will 
depend  upon  the  character  of  facilities  provided  by  the  State 


94 


terminals.  If  the  port  of  Rotterdam  can  discharge  11,000  tons 
of  grain,  bunker  the  vessel,  furnish  all  needed  supplies  and  clear 
the  vessel  in  less  than  24  hours,  the  State  terminals  we  con¬ 
struct  must  be  equipped  to  closely  approximate  such  results,  since 
modern  competition  demands  it  to  secure  the  business  for  the 
port.  It  is  well  known  that  proximity  to  the  sea  invariably 
saves  in  time  and  in  operating  expenses.  With  State  owned 
and  operated  terminals  at  Southport  there  will  be  no  delays 
waiting  for  tides  or  daylight,  as  vessels  can  enter  and  depart 
at  any  hour  of  the  day  or  night,  and  when  in  the  port  there 
will  be  an  equality  and  reduction  of  charges  with  an  equality 
of  right  to  all  in  the  use  of  all  terminal  facilities.  It  is  such 
modern  and  up  to  date  facilities  with  equality  to  all  that  bring 
ships  and  railways  with  large  volumes  of  business  to  any  and 
all  ports,  and  upon  which  North  Carolina  can  and  must  rely. 

7.  Coal  and  oil.  We  have  shown  that  Southport  is  the  only 
place  in  the  State  where  a  coaling  port  for  export  and  bunker¬ 
ing  of  coal  and  oil  can  be  economically  established. 

Southport.  What  is  it,  and  why?  It  is  a  village  of  1,600 
people  with  its  own  electric  light  and  water  plant,  supplying 
excellent  water  in  abundance;  an  ice  plant,  some  fish,  prawn 
scrap  and  oil  factories  and  with  several  miles  of  cement  walks. 
The  wonder  is  not  that  it  has  grown  but  that  it  exists  at  all 
after  the  years  and  years  of  complete  isolation  and  strangula¬ 
tion  to  which  it  has  been  subjected.  Its  principal  excuse  for 
existence  is  that  it  is  located  on  the  only  deep  tide  water  in 
North  Carolina,  forming  the  potentially  best  and  safest  harbor 
on  the  Atlantic  coast  south  of  Norfolk,  and  capable  of  equaling 
that  as  a  port.  As  this  harbor  cannot  be  moved  or  stolen,  resort 
has  been  had  to  extraordinarily  successful  concealment  of  its 
value  as  a  natural  harbor  and  of  its  unlimited  potentialities  as 
a  tide  water  port  for  the  commerce  of  the  State,  the  country  and 
the  world.  The  people  of  this  State  who  own  it  have  been  kept 
in  Egyptian  darkness  as  to  the  real  asset  they  possess  in  this 
harbor  and  surroundings.  Practically  none  of  them  realize  the 
priceless  value  of  the  locality  as  an  all  the  year  health  resort, 


95 


of  its  limitless  resources  in  horticultural  products  and  of  the 
value  of  the  waters  in  fish  and  sea  food  of  all  kinds,  including 
the  diamond  back  terrapin  of  equal  or  better  flavor  than  those 
that  made  Maryland  famous. 

Shall  we  in  North  Carolina  continue  in  our  ignorance  and 
neglect  of  this  great  harbor  ?  Or,  shall  we  unshackle  the  products 
of  our  farms  and  factories  from  the  strangle  hold  of  freight 
rate  discrimination  by  opening  up  this  great  port  to  the  com¬ 
merce  of  the  world?  You  cannot  depend  upon  Southport  to 
do  this;  it  is  impossible.  It  has  neither  the  influence  nor  the 
financial  backing  to  accomplish  it.  This  is  clearly  the  business 
of  the  State,  since  the  entire  State  will  receive  the  benefits,  and 
therefore  the  State  must  do  it. 

We  have  tried  to  point  out  the  way  by  showing: 

(a)  That  nature  has  fixed  the  great  tidal  basin  at  the  mouth 
of  the  Cape  Fear  River  as  the  one  and  only  place  on  the  North 
Carolina  coast  susceptible  of  being  developed  into  a  deep  tide 
water  port. 

(&)  That  nature  has  also  fixed  and  with  equal  definiteness  the 
harbor  at  the  mouth  of  this  basin  as  the  one  and  only  natural 
location  for  a  rate  basing  port. 

O)  That  the  location  of  port  terminal  facilities  for  a  deep 
tide  water  port  at  any  other  place  in  this  State  or  in  this  tidal 
basin  will  involve  the  unnecessary  expenditure  of  many  millions 
of  dollars  to  secure  harbor  requirements  in  depth  ol  water,  pro¬ 
tection  and  anchorage  space,  already  existing  at  Southport, 
without  a  penny  of  cost. 

( d )  That  a  tide  water  port  or  ocean  terminal  with  adequate 
modern  facilities  is  the  first  essential  for  breaking  up  freight 
rate  discrimination  against  this  State. 

O)  That  there  is  ample  traffic  naturally  and  logically 
tributary  to  Southport,  when  suitably  equipped  with  terminal 
facilities. 

(/)  That  the  State  is  fully  justified  by  reason  of  precedents 
shown,  and  as  a  promising  business  proposition,  in  lending  its 
credit  for  locating  and  constructing  these  terminal  facilities, 


96 


since  such  investments  have  always  been  profitable  and  always 
take  care  of  bonds  issued. 

(g)  That  this  construction  of  a  State  port  with  modern  and 
adequate  port  terminal  facilities  is  not  only  warranted  but  de¬ 
manded  in  order  to : 

(1)  Relieve  the  congestion  in  other  existing  ports  upon 
which  hundreds  of  millions  of  dollars  are  being  expended 
to  increase  existing  terminal  facilities. 

(2)  To  reduce,  regulate  and,  as  far  as  practicable,  avoid 
excessive  port  charges  at  other  ports,  and  likewise  prevent 
discrimination  against  shipping  entering  the  harbor. 

(h)  That  this  tide  water  port  must  be  connected  by  a  suitable 
railway  under  one  management  through  the  coal  fields  of  the 
Virginias,  Kentucky  and  Tennessee,  to  the  Middle  West  in 
order  to  secure  the  best  results. 

( i )  That  this  tide  water  terminal  by  the  State  will  certainly 
result  in  (1)  securing  coal  and  oil  at  competing  prices  for  a 
coaling  station  and  for  export  through  such  terminals;  (2)  in 
securing  through  and  satisfactory  rail  connections  for  all  traffic 
to  Cincinnati  and  the  Middle  West  through  the  coal  fields,  and 

(3)  in  breaking  up  the  existing  freight  rate  discrimination  by 
having  the  port  officially  declared  a  rate  basing  tide  water 
terminal. 

Recommendations 

We  urgently  request,  therefore,  that  you  actually  and  defi¬ 
nitely  recommend  to  the  Governor  and  Council  of  State  for  the 
earnest  consideration  of  the  General  Assembly  of  the  State : 

1.  That  the  State  of  North  Carolina  locate  and  establish  a 
deep  tide  water  port  at  Southport,  North  Carolina,  to  be  equip¬ 
ped  with  adequate  and  modern  terminal  facilities,  and  to  be 
maintained  and  operated  by  the  State  in  perpetuity. 

2.  That  the  actual  management  and  control  of  this  State  port 
be  invested  in  a  State  commission,  duly  appointed  by  the  Gov¬ 
ernor  of  the  State,  with  the  approval  of  the  Senate. 

3.  That  these  terminal  facilities  be  constructed  as  follows : 

By  first  providing  adequate  and  modern- facilities  for  hand- 


97 


ling  coal  and  oil  for  bunkering  and  for  export,  for  freight  and 
passenger,  and  then  for  lumber,  grain,  etc.,  as  demanded. 

That  for  the  location  and  construction  of  this  State  port  with 
terminal  facilities  the  State  Port  Commission  be  authorized 
and  directed  to  employ  competent  experts  as  port  engineers,  etc., 
as  long  as  their  services  may  be  needed. 

That  the  State  of  North  Carolina  issue  bonds  in  the  minimum 
amount  of  $10,000,000.00.  The  proceeds  of  such  bonds  to  be 
utilized  for  the  construction  of  this  deep  tide  water  port  with 
adequate  and  modern  terminal  facilities  at  Southport  under  the 
supervision  of  the  State  Port  Commission.  That  the  income 
from  this  investment,  after  providing  the  necessary  sinking 
fund  and  paying  all  costs  of  administration  of  the  port,  shall 
constitute  a  revolving  fund  and  be  invested  in  improvements 
of  this  port  and  terminal  facilities.  That  should  the  establish¬ 
ment  of  such  port  with  adequate  and  modern  terminal  facilities 
not  result  in  the  immediate  abolishment  of  the  existing  freight 
rate  discrimination  against  North  Carolina  through  the  exist¬ 
ing  railways,  or  through  the  immediate  construction  of  one  or 
more  trunk  line  railway  systems  connecting  this  port  of  South- 
port  with  Cincinnati  and  the  Middle  West  through  the  coal 
fields,  that  then,  and  in  that  case,  the  State  of  North  Carolina 
take  appropriate  steps  to  secure  such  railway  connections. 

In  concluding  may  we  urge  that  you  make  a  positive  and 
direct  recommendation  in  which  you  fix  the  location  definitely 
for  a  deep  tide  water  port  with  adequate  modern  terminal  facili¬ 
ties,  to  be  constructed  and  operated  by  the  State  in  perpetuity. 
We  believe  that  the  time  has  past  for  dilatory  proceedings  and 
calls  loudly  for  definite  and  positive  action  for  the  relief  of  the 
State.  We  are  at  the  parting  of  the  ways  in  our  future  progress. 
We  have  been  long  enough  shut  off  from  our  full,  free  and 
rightful  access  to  the  ocean  commerce  of  the  world.  A  terminal 
through  which  our  people  and  our  commerce  must  pass  to  and 
from  the  ocean  will  not  come  into  existence  of  its  own  initiative. 
We  must  construct  it.  Let  us  do  this  by  direct  action  of  our 
State  and  through  it  get  acquainted  with  the  world  and  at  the 


—7 


98 


same  time  acquaint  the  world  with  us  and  with  what  we  have 
to  offer  them.  This  is  the  one  most  promising  way  to  secure 
our  full  share  of  the  world’s  commerce  and  thereby  build  up  a 
successful  and  contented  citizenship.  Let  us  do  this  for  our¬ 
selves  and  never  forget  that  the  Lord  helps  those  who  help 
themselves. 

In  closing  our  brief  we  desire  to  express  our  appreciation  of 
the  services  of  Gen.  E.  F.  Glenn  in  preparing  and  submitting 
this  brief  to  your  honorable  body. 

The  Southport  Chamber  of  Commerce, 

By  T.  H.  Lindsay, 

Secretary . 


